NonFarm Payroll Report (NFP)

2nd June, 2017

What is the NFP?

NFP is an acronym for Non Farm Payroll Report, a commonly anticipated U.S. government report released on the first Friday of every month. NFP data is collected, analyzed & released by the United States Labor Department, providing a financial and economic summary from various standpoints of leading American companies and manufacturers. The NFP report is frequently anticipated by economists, market analysts, & traders worldwide, due in part to its track-record of generating change and volatility in financial markets on the days prior to, following, and most significantly, on the day of its release.

The report’s results are generated based on data collected via household, institution and corporate payroll surveys, with corporate payroll surveys designed in direct correlation to the US Labor Department’s interviews of U.S. businesses and manufacturers. In turn, the public is exposed to factual, economic and employment statistics about some of the biggest names in corporate America, with survey questions developed based on the feedback of U.S. corporate spearheads. Should business owners and leading executives forecast positive economic developments for their company, recruitment numbers escalate, generating higher survey figures and results, and the reverse for negative projections.

Why Follow the NFP Report Results Monthly?

Often vital and useful to Forex traders globally, past NFP Report release dates have proven to generate high levels of market volatility, along with the evident impact on long-term currency trends, and U.S. index and commodity rates on the day results are announced.

Simultaneous to the announcement of NFP Report results, the U.S. unemployment rates, average hourly pay rate and the industrial manufacturing stats are released to either support or negate the US Labor Department’s conclusions. Traders can thus evaluate their execution approach and make strategic decisions in considering the various statistical factors and data available to them. Whether it be in determining and planning the timing of buying and selling an instrument, opening and/or closing trades, or selecting an instrument to pursue based on economic conditions, the NFP Report results are used by many as a tool to optimize trading results.

Watch previous videos:

March 10th, 2017
January 06th, 2017
December 02nd, 2016
November 04th, 2016
08/10/2016

Video disclaimer:
This information is communicated to you by Safecap Investments Limited (“Safecap”) and has been prepared by Trading Central S.A (“Trading Central”) of 11 bis rue Scribe, F-75009 Paris. Trading Central engages in the preparation of technical, economic and corporate news and analysis for the forex, equities and other global markets. Trading Central is not registered in France as an Investment Services Provider. Affiliates in the Trading Central Group are registered in two jurisdictions. Trading Central is remunerated for this service by Safecap on a fixed fee basis.

This information is not and should not be construed to be investment advice. It is communicated to you for general information purposes only and does not have regard to your particular investment circumstances or objectives. Descriptions of any company or companies or their securities or the markets / economies or developments mentioned herein are not intended to be complete. This information set out herein should not be regarded by recipients as a substitute for the exercise of their own judgment as the information has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Furthermore, the application of taxation laws depends on an investor’s individual circumstances. Accordingly, each investor should seek, if he/she considers appropriate, relevant independent professional advice on both the investments considered as well as the taxation implications before making any investment decision. The information and opinions herein have been compiled or arrived at based on information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified, is provided on an “as is” basis and no representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness, reliability, merchantability or fitness for a particular purpose of such information and opinions. All statements of opinion (including indicatively words or statements like “bullish”, “bearish”, “key support”, “outlook”, “projection”, “expectation” and “believe”) and all projections, forecasts, or statements relating to expectations regarding future events or the possible future performance of investments, represent Trading Central’s own assessment and interpretation of information available to Trading Central currently and do not relate to the individual circumstances of any investor or recipient of this communication.

This information does not form a fiduciary relationship or constitute advice by Safecap or Trading Central, and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated price. This information is not an advertisement of securities. Opinions expressed herein may differ or be contrary to opinions expressed by other business areas of Safecap, Trading Central or their affiliates as a result of using different assumptions and criteria. All such information and opinions are subject to change without notice, and neither Safecap or Trading Central nor any of their affiliates is under any obligation to update or keep current the information contained herein. The financial instruments described herein may not be eligible for sale in all jurisdictions or to certain categories of investors.

The information herein is not intended for distribution to the public and may not be reproduced, redistributed or published, in whole or in part, for any purpose without the written permission of Safecap, and neither Safecap or Trading Central or any of their affiliates accept any liability whatsoever for the actions of third parties in this respect.

Trading CFDs carries risk and could result in the loss of your deposit, please trade wisely. Read full Risk Disclosure.