What is Non-Farm Payroll?
Non-farm Payroll from the USA is released on the first Friday of every month, it is regarded as one of the major monthly events that have the ability to create high volatility within the markets. NFP is the summary of new jobs created in the previous month like its name suggests not including those in the agricultural industry, this also includes some government workers and non-profit employees.
Why is Non-Farm Payroll so important?
NFP is released monthly this gives it strength when showing the current state of the economy, the data is calculated by the bureau of labour statistics, the federal reserve bank sees the employment figures as hugely important. A lower reading is seen as negative reversely a higher reading is seen as positive. With the USD making up 62% of the world FX market, the potential volatility across any instruments backed by the USD are huge. NFP can case 100–150 pip moves in a matter of seconds.
When does Non-Farm Payroll Happen?
NFP will usually take place on the first Friday of every month and is released by the Bureau of Labour statistics. It is released at 1330 GMT or 0830 ET. NFP will be released at 1330 on Friday 10th January.