NFP stands for Non-Farm Payrolls, which is a part of the monthly Employment Situation Report that estimates the number of jobs gained (excluding farm workers) in the U.S. in the previous month. The NFP report is a key economic indicator for the United States and affects trading and volatility in the foreign exchange market. The report is released on the first Friday of every month at 8:30 a.m. EST and can create high volatility in the financial markets.

The NFP report is important for traders because it can be a catalyst for trade in foreign exchange trades based on changes in employment. The report consistently causes one of the largest rate movements of any news announcement in the forex market. Traders can use technical analysis in the NFP report using 5 or 15-minute chart intervals. There are three ways to analyze the U.S. nonfarm payroll number: the headline number, the unemployment rate, and wage growth. Trading on news releases can be very profitable, but volatile. It is possible to wait for wide rate swings to subside when traders can capitalize on the real market move after the early speculators have taken profits or losses.

In summary, NFP is a report that estimates the number of jobs gained (excluding farm workers) in the U.S. in the previous month. It is released on the first Friday of every month at 8:30 a.m. EST and can create high volatility in the financial markets. Traders can use technical analysis and analyze the headline number, the unemployment rate, and wage growth to capitalize on the real market move after the early speculators have taken profits or losses.