Why NFP matters
Employment data feeds directly into expectations for Federal Reserve policy. A hot report raises the odds of tighter policy and usually supports the dollar; a weak one does the opposite.
Education
NFP
Non-Farm Payrolls is the monthly US employment report and one of the most market-moving releases of all.
Monthly release
Published by the US Bureau of Labor Statistics, usually the first Friday.
Three key numbers
Payroll change, the unemployment rate and average hourly earnings.
Immediate reaction
The dollar, gold and US indices often move within seconds.
Trading around the release
Spreads widen and slippage rises in the moments around publication. Many traders reduce size, widen stops or simply wait for the first wave of volatility to pass before taking a position.