Non-Farm payroll
At Stellar Assests, we trade the NFP (Nonfarm Payroll) and share the profits amongst our investors who show interest in NFP trading.
What is NFP?
The nonfarm payroll (NFP) report is a key economic indicator for the United States and represents the total number of paid workers in the U.S. excluding those employed by farms, the federal government, private households, and nonprofit organizations.
* Trading the Nonfarm Payroll Report
The nonfarm payroll (NFP) report is a key economic indicator for the United States and represents the total number of paid workers in the U.S. excluding those employed by farms, the federal government, private households, and nonprofit organizations.
The nonfarm payroll report consistently causes one of the largest rate movements of any news announcement in the foreign exchange (forex) market. As a result, many analysts, traders, funds, investors, and speculators anticipate the NFP number and the impact that it will have on forex.
The NFP report is typically released on the first Friday of each month, providing the total monthly increase or decrease in paid U.S. workers across most businesses.
Increasing numbers may show economic expansion but may also give investors reason to be concerned about inflation and decreasing numbers suggest a broader economic concern.
* Trading on News Releases
Trading on news releases can be very profitable, but volatile. It is possible to wait for wide rate swings to subside when traders can capitalize on the real market move after the early speculators have taken profits or losses.
The release of the NFP report generally occurs on the first Friday of every month at 8:30 a.m. EST and creates a favorable environment for active traders providing a near guarantee of a tradable move following the announcement.
As with all aspects of trading, profit is not ensured so approaching the trade from a logical standpoint, based on how the market is reacting, can provide more consistent results than simply anticipating the directional movement that the event will cause.
* What Is the NFP Trading Strategy?
The NFP report generally affects all major currency pairs, but one of the favorites among traders is the British pound/U.S. dollar (GBP/USD). Because the forex market is open 24 hours a day, all traders can trade on the news event.
Once the market has digested the information’s significance and initial swings, investors will enter a trade in the direction of the dominating momentum and a signal indicating that the market has chosen a direction. This avoids jumping in too early and decreases the probability of being whipsawed out of the market before it has chosen a direction.
* What Is the Nonfarm Payroll Report?
Nonfarm payrolls (NFPs) are the measure of the number of workers in the United States excluding farm workers and workers in a handful of other job classifications. This is measured by the federal Bureau of Labor Statistics (BLS), which surveys private and government entities throughout the U.S. about their payrolls. The BLS reports the nonfarm payroll numbers to the public every month through the closely followed Employment Situation report.