The Non-Farm Payroll figure reports on the number of waktu news nfp forex created in the United States during the previous month in the non-agricultural sector, and, consequently, it measures the level of activity and health of the U. The NFP figure is one of the market’s most watched indicators of economic growth. It is a “market mover” that significantly influences the prices of the forex and financial markets. In order to be meaningful, this indicator needs to be very high, or extremely negative, but in practice, traders’ reactions to it are often exaggerated.
An NFP figure that is significantly higher or lower than expectations often has a strong impact on the psychology of the financial markets, especially on the value of the U. If the indicator is trending upward, this has a positive effect on the dollar, but it can cause fears of inflation if the country’s economy is in an expansion phase. The greater the difference between the expected figure and the actual figure, the more the market movement will be volatile. In addition, they have the advantage of knowing their clients’ stops. Following an economic announcement such as the NFP, forex prices frequently head in the wrong direction, as professionals are hunting down their clients’ stops! Shortly afterwards, the price of the currency heads in the direction dictated by the economic announcement. When employment figures are released, volatility can be very high.
USD price can sometimes vary by one hundred pips in just a few minutes. The likelihood that your positions trigger a stop loss or face a margin call is high. It is therefore advised that you enter the market after the economic announcement for a short-term strategy. Beginners are advised to not enter the market before the release of important news such as the NFP report.
The indicator can eventually be used to influence the month’s dominating strategy. In this case, we wait for negative news in an upward trend to place an order in a trough and vice versa in a downtrend. It can also be used to influence the leading strategy of the day. USD if the expected NFP figure is bad and vice versa if the expected NFP figure is positive. This technique consists in placing an order right after the news is released, while using a 5-minute candlestick chart. USD if the NFP number is negative and vice versa if it is positive.
If your trading capital allows it, you can trade the announcement more aggressively with the same entry strategy but by placing stop loss orders on the high or low of the economic announcement’s first candle. When using this strategy, it is important to keep in mind that some brokers’ spreads widen significantly during these major economic announcements. Always test your strategies on a demo account! Then, when you use this strategy on a real account, use a low level of leverage, as leverage should primarily be used to diversify your positions and not to increase your exposure to risk on a financial instrument. Non-agricultural job employment rate: Determines the variation in the number of people employed during the past month, excluding the farming industry.