Once a month, forex charts light up at the same minute and spreads widen as traders brace for one number. That number is the NFP — Non-Farm Payrolls — one of the most closely watched economic releases in the world. For anyone trading dollar pairs, it's worth understanding.
What the NFP measures
Non-Farm Payrolls is a headline figure from the monthly U.S. employment report published by the Bureau of Labor Statistics (BLS). It estimates how many jobs the U.S. economy added or lost in the previous month, excluding farm work, private household staff and a few other categories — hence "non-farm."
The same report also includes the unemployment rate and average hourly earnings, which traders read alongside the payrolls number for a fuller picture of the labour market.
When it's released
The NFP is typically published on the first Friday of each month, in the morning U.S. Eastern time. Because the release time is fixed and known in advance, traders can see it coming on any economic calendar — and volatility tends to spike right at the release.
Why forex traders care
Employment is a core signal of economic health, and it feeds directly into expectations about interest rates. The logic runs like this:
- A strong jobs number suggests a healthy economy, which can push the central bank toward higher interest rates — often supportive of the U.S. dollar.
- A weak number suggests a slowing economy, which can point toward lower rates — often a drag on the dollar.
Because currencies trade in pairs, a surprise in the NFP can move EUR/USD, GBP/USD, USD/JPY and other dollar pairs sharply within seconds.
Warning
It's usually the surprise that moves the market, not the raw number. Price reacts to how the actual figure compares with what economists expected — a "good" number that's below expectations can still weaken the dollar.
The risk around high-impact news
News releases like the NFP are among the most dangerous moments for beginners. In the seconds after the print, price can gap, spreads can widen, and orders can fill far from where you intended — a problem known as slippage. Stop losses may execute at worse prices than the level you set.
Risk
Trading the NFP release directly is high-risk and not suitable for beginners. Many experienced traders simply stand aside during major news rather than gamble on the reaction.
How beginners should treat the NFP
You don't have to trade the NFP to benefit from knowing it exists:
- Check the calendar at the start of each week and note when the NFP (and other high-impact events) land.
- Avoid opening new trades right before the release if you're not prepared for the volatility.
- Watch first, trade later — study how pairs behave around the number before ever putting money into that reaction.
Follow the market with the right tools
A regulated broker gives you an integrated economic calendar and transparent execution — the basics you need to navigate news events safely.
Pepperstone
Best for Copy Trading
Trading Forex and CFDs involves a significant risk of loss.
Educational content only, not financial advice. Trading forex carries a high level of risk. Read our full affiliate disclosure.