Many investors who trade on the foreign exchange market (FOREX), trade only during or around the time of issuance of the wage report with the US nefermernyh farms (NFP). They are attracted by the volatility of currencies – particularly the majors related to the US dollar – which occur at this time. Investors who rely on this or other financial news events for their trading activities, called the news traders. Many people using other trading methods, be sure to include the NFP in their trading calendar. Let's find out why so many traders are interested in this report.
NFP comes out once a month, usually on the first Friday at 8:30 am, according to New York time. On occasion, he will come on the second Friday of the month, not the first, but always in the same hour of the day. US Department of Labor is responsible for the preparation and release of the report, which is kept secret until it's officially time to release. The report contains data on unemployment in the US economy neselgasarganizatsyyah. By the way, other industrial countries also publish some commonality of this type of reporting. Simply put, if the figures published in the NFP, constitute serious & # 39; major revision of earlier estimates, the market reaction is likely to be quite clear.
The reaction to the expected NFP data from traders around the world, in terms of the activity of buying and selling, as a rule, leads to the fact that the value of the US dollar is jumping up and down. This usually occurs from the moment the report is made public. Sometimes spike occurs early, ie within a minute just before leaving at 8:30. Although less common, it was also observed that the spike can be held up to 15 or 20 minutes after the release of the report.
Other regular financial reports can also change the price of the currency, but not as consistently dramatic and dynamic, as the NFP results. Over the past few years, the range of movement of the US dollar as a result of NFP is usually from 50 to 90 points in the same general direction. Retrieving repeated, ie the price movement back to the initial cost, often provide additional trading opportunities. Many traders feel the yield in the range of 5 to 20 percent only for this report.
Why NFP stands out for its ability to move the market? NFP is published by the US government as an official statement of what makes the US economy. Based on the content of the report, the measurement of the country's health is considered in terms of its employment. Many scientists and traders consider the employment situation in the country as a leading indicator of how in this country economically. If the employment situation is grim, so it should be and the general economy. The weak economy is always bad news for the currency of this country.
It is necessary to recognize and appreciate that the US dollar has always aroused great interest among traders around the world. As is well known, its liquidity, the relative stability and the support of the world's largest economy (at least, as long as China does not take place the first place, as expected in 2026), green market is often accepted as payment for goods and services worldwide. world. This is true even when it is not the official currency in the jurisdiction. This is one of the few against the currencies, which is called a "hard currency" in the global financial sector. He is always in the spotlight as a global player.
Recently there has been a weakening of the US dollar compared to other currencies. Undoubtedly, global events, including the US involvement in Iraq, Pakistan and Afghanistan have contributed to the gloomy view, which is shared by some relative value of the dollar. On the other hand, some see it as a good opportunity for large and small corporations in the US to export goods and services to other countries. This can lead to recovery of the dollar in the long run.
a variety of strategies to take advantage of market prices upward trend to rapid NFP news release have been developed. As might be expected, some strategies work better than others. More and more manufacturers and programmers design and sell automated software for traders who are interested in a fast-paced environment, coupled with the release of NFP. The price range for such software may range from a few hundred to several thousand dollars. Of course, manual trade NFP can still be successful, as proven many traders. Regardless of the method and strategy, many in the world of commerce will continue to pay attention to the NFP release and use it as one of the greatest regular and recurring opportunities for trade on the FOREX market.