8:58 AM
AGHA
It's a data released monthly by the US Department of Labor as part of a comprehensive report on the state of the labor market. It's a kind of economic indicator. Traders are always waiting for the release. Just keep your eyes open! They release NFP data every first friday of the month. NFP will be represented as number which means the number of jobs added or lost in the economy over the last month, not including jobs relating to the farming industry.
NFP is an influantial indicator: Wikipedia tells us that increases in employment means both that businesses are hiring which means they are growing and that those newly employed people have money to spend on goods and services, further fueling growth. The opposite of this is true for decreases in employment.
When the NFP's change is positive, USD will get stronger against all of the currencies. As we know if USD gets stronger, then EUR/USD will fall for instance. So, if the economists forecast that NFP will rise, why don't you sell the EUR/USD? But sometimes NFP has a negative change. We must buy EUR/USD, GBP/USD, etc. immediately to gain profit. Look at the picture above! That's the GBP/USD movement from June 6th to 8th. June 7th was Friday and based on US Bureau of Labor Statistic, Total nonfarm payroll employment increased by 175,000 in May 2013. After GBP got stronger (rose highly against USD), it suddenly moved down by the time the NFP was released.
Well guys, I remind you. This is the end if June, and July will come soon. So, prepare yourself to keep finding the news about the next released NFP. They'll release the news on July 5th at 8.30 (US time). Have a nice trading!
