Almost every Forex Trader would have heard of NFP, but not ever trader understand NFP or know how to trade NFP. I believe that if one do not understand what they do, it is as good as placing a 50:50 bet. There is a reason why they say "knowledge is half the battle". As I am highlighting NFP to a fellow trader in his own journey to FX Trading, I believe it would benefit others to start a section on NFP that I will try elaborate how one should trade NFP.
What is NFP?
Non-Farm Payrolls, is an economy news release of US's non-farmer employment changes. This news release highlight the changes of employment for the previous month excluding the agriculture sector.
How often does this happen?
This news release usually happen ever 1st Friday of every Month at 8:30AM EST. One can track the details of NFP news and its numbers from http://www.forexfactory.com/
Why is NFP so important?
As USD is currently the world's base currency in any exchange; if it catches a cold the others would feels its sneeze. If USD strengthen, anything trading against the USD would feels the move.
What imapct can NFP make to the market?
Anything tag to the Dollar would swing, spike or even skip a beat. The market move in a minute what it would usually take hours to accomplish. I personally generalized NFP move at an average of 100 pips even though at times it would double and triple that particular amount depending on a particular pair.
Advice: Trade at your own risk, do what you feel most comfortable with.
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