What is NFP?

Understanding NFP (Non-Farm Payroll)

Every first Friday of the month at around 6 PM (GMT+7), the United States releases data regarding changes in the number of employed workers across almost all sectors. This data is called NFP (Non-Farm Payroll).

Why Is NFP Important?

NFP reflects the employment condition in the United States and significantly influences the monetary policy decisions of the U.S. Central Bank (Federal Reserve). Strong employment data usually leads to tighter monetary policy, while weak data may lead to easing.

What Is the Use of NFP for Traders?

Typically, strong NFP data strengthens the USD, causing XAUUSD (Gold) to fall. Weak data usually weakens the USD and causes gold to rise.

Whether data is considered “good” or “bad” depends on market expectations. Traders often analyze ADP employment data first as an early indicator.

Where to Check NFP Results?

We recommend checking the NFP calendar and results on:
Investing.com – NFP Calendar

How to Read the NFP Data?

On the NFP results page, three components are displayed:

• Actual – The newly released data.
• Forecast – Market expectation.
• Previous – Last month's NFP result.

Interpretation:
• If Actual Forecast: USD strengthens, Gold weakens. • If Actual : USD weakens, Gold strengthens.

Predicting NFP Before Release

Two days before NFP, the U.S. releases ADP Employment Data. ADP collects employment data from around 400,000 U.S. business clients, making it a strong predictor of NFP.

Where to Check ADP Results?

We usually refer to:
ADP Employment Data – Investing.com

ADP's "Actual" value can be compared with the NFP forecast. • Higher-than-expected ADP → Bullish USD • Lower-than-expected ADP → Bearish USD

What Positions Do Traders Usually Take?

During NFP, volatility is extremely high. Many traders prefer trading XAUUSD because it is not tied to a specific country.

Possibilities:

• USD Strengthens: BUY pairs that start with USD / SELL pairs that end with USD

• USD Weakens: SELL pairs that start with USD / BUY pairs that end with USD

Examples: • USD pairs starting with USD: USDJPY, USDCAD • USD pairs ending with USD: EURUSD, XAUUSD

Disclaimer

Trade at your own risk. Market movements during NFP are extremely volatile. TradeW is not responsible for any profits or losses resulting from trading decisions.