Forex Education

Trading industry knowledge. Learn forex trading, investing in stocks, commodities.

  • Home
  • Choose a broker
  • Best Forex Brokers
  • Learn trading
  • Affiliate
  • Contact
  • About us
Home » Fundamental Analysis » How Many Pips Does NFP Usually Move the Asset?

How Many Pips Does NFP Usually Move the Asset?

by Fxigor

The NFP (Non-Farm Payroll) report is an important economic indicator released by the United States Department of Labor on the first Friday of every month. The report provides a snapshot of the job market in America and is widely watched by investors, economists, and policymakers to assess the economy’s health.

how price moves during NFP

You can check our NFP calendar page to see NFP dates.

BEST BROKERS REVIEWS
avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

Generally, a strong NFP report implies that the job market is healthy and more Americans are finding employment, which is good news for businesses and consumers. Conversely, a weak NFP report suggests that there has been a contraction in jobs, signifying that economic activity may be slowing down. As such, an unexpected change in the numbers can significantly affect stock markets and currency exchange rates.

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

BEST BROKERS REVIEWS
free course banner

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

What is NFP?

The non-farm Payroll report represents the number of jobs added or lost in the US economy over the last month. NFP means Non-Farm Payrolls and represents a number that measures the number of workers in the United States for the previous month without farmworkers and a handful of workers. So, the word “Non-farm” means that farmworkers are not included in the payroll jobs counting.

What is NFP

The NFP report looks at net changes in non-farm payrolls – i.e., those employed outside traditional farming or agricultural occupations. It includes wages from services such as retail trade, education, healthcare, and hospitality; and excludes military personnel and government employees. The number provided in the report represents an estimate for all employees not working on farms, including both full-time and part-time workers but also those working as independent contractors or self-employed individuals with no central employer.

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

In addition to providing information on changes in non-farm payrolls, each NFP report also contains estimates of average hourly earnings (AHE), which indicate how much wages have grown over time – this helps to provide insight into consumer spending power which drives two-thirds of US GDP growth.

BEST BROKERS REVIEWS

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

free course banner
fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

The monthly release of the NFP figures can cause significant volatility across equity markets; when the number deviates significantly from expectations, it often leads to substantial trading movements as traders adjust their positions based on the new information provided within this critical economic indicator. Accordingly, investors – particularly those with long-term investments – should be aware of what data is being published each month when constructing their portfolios so they can react appropriately to any unexpected movements caused by it.’

NFP volatility EURUSD and GBPUSD

How Many Pips Does NFP Usually Move the Asset?

Usually, major US forex pairs move around 80% daily average true range in the first hour of the NFP report. For example, in the year 2022. EURUSD moves 66 pips while GBPUSD 78 pips during the NFP release.

Non-Farm Payroll (NFP) volatility is a significant factor in the foreign exchange (forex) market. The release of the NFP report causes substantial movements in the central US currency pairs, such as EURUSD and GBPUSD, as well as other global currency pairs. Understanding how NFP affects forex markets can help traders make more informed decisions and potentially increase their profitability on their trades.

When the monthly NFP report is released, it can cause significant volatility in the forex market, with traders and investors looking to capitalize on any potential movements that may arise from the news. Traditionally, major US currency pairs move around 80% of their daily average true range during the first hour after an NFP report has been released. For example, in 2022, EURUSD moved 66 pips while GBPUSD 78 pips during a single NFP release.

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

This extreme volatility can be significant for traders willing to take on greater risk for more considerable gains; however, there are also risks associated with taking advantage of these extreme price moves following an NFP release. One of these risks is order slippage which occurs when your trade doesn’t get filled at the price you expect it to be served at because of high volume and liquidity issues caused by increased volatility surrounding an NFP release. To limit this risk, traders need to use limit orders when trading near an NFP release to avoid any unexpected losses due to order slippage.

Another risk associated with trading near an NFP release is that prices tend to move quickly and unpredictably during this period, so traders must act quickly if they want to capitalize on any potential profits available following an NFP release. This means traders must have a clear strategy before entering into any position immediately following an NFP release; otherwise, they could see their positions become quickly unprofitable due to rapid price changes during this volatile period.

It’s vital for all traders, regardless of experience level or trading style, to understand how volatility surrounding Non-Farm Payroll releases can affect their trading results and ensure they have measures in place to mitigate any potential risks. By understanding Non-Farm Payroll volatility and having a plan in place beforehand, many traders have found success trying to capitalize on these large movements following an NFP report release each month.

NFP volatility is very high for US-related pairs such as EURUSD, GBPUSD, USDJPY, etc. Please watch our video related to NFP volatility:

To analyze NFP dates, you need to check the Non-farm Payroll calendar, which you can do from our website:
NFP on forex.in.rs

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

Now let us see NFP volatility charts:
NFP change in pips

As we can see on the chart above, the first volatility will occur 30 minutes before release.

Below you can see the peak during the news release:

eurusd price during NFP report example

So let us see one example of when an NFP report is perfect for confirming a trend:

NFP volatility during release

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

NFP bounce example

EURUSD bounce example after bad NFP report

As we can see, it is essential to analyze the NFP report together with the unemployment rate because mixed results can generate different directions:

Unemployment rate in US scaled

EURUSd price decline after NFP release

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

Conclusion

Non-Farm Payroll Report is an essential indicator that can cause intense volatility for US-related forex pairs. In that case, always analyze NFP and the unemployment rate because mixed results can form unexpected trends.

  • Author
  • Recent Posts
Fxigor
Fxigor
Trader at Leanta Capital
Igor has been a trader since 2007. Currently, Igor works for several prop trading companies.
He is an expert in financial niche, long-term trading, and weekly technical levels.

The primary field of Igor's research is the application of machine learning in algorithmic trading.

Education: Computer Engineering and Ph.D. in machine learning.

Igor regularly publishes trading-related videos on the Fxigor Youtube channel.

To contact Igor write on:
igor@forex.in.rs
Fxigor
Latest posts by Fxigor (see all)
  • Are PAMM Accounts Safe?
  • How Many Pips Does US30 Move Daily?
  • How to Calculate Pips on TradingView?

Related posts:

  1. How Many Pips Does USDJPY Move Daily?
  2. How Many Pips Does GBPUSD Move Daily?
  3. How Many Pips Does GBPJPY Move Daily?
  4. How Many Pips Does EURUSD Move Daily?
  5. How Many Pips Does Gold Move in a Day?
  6. What is an Asset Sale in Business?
  7. How to Trade Non Farm Payroll
  8. Non-Farm Payroll Dates 2023.
  9. Asset Turnover Ratio Calculator
  10. Current Asset Management Definition
  11. How to Use NAV and RNAV (Revalued Net Asset Value) to Value Real Estate Stocks

Filed Under: Fundamental Analysis

Trade gold and silver. Visit the broker's page and start trading high liquidity spot metals - the most traded instruments in the world.

Trade Gold & Silver

Diversify your savings with a gold IRA.

Gold & silver portfolio-building assistance from product professionals.

VISIT GOLD IRA COMPANY If you want to trade stocks try: TRADE IDEAS

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

Website categories

Main Forex Info

  • Forex Calendar 2022
  • Forex Holidays Calendar 2022 – Holidays Around the World
  • Non-Farm Payroll Dates 2023.
  • Fed Meeting Schedule 2023. Dates! – FOMC Dates
  • Key Economic Indicators For a Country
  • What is PAMM in Forex?
  • Stock Exchange Trading Hours

Main navigation:

  • Home
  • About us
  • The Best Forex Brokers of 2023 (Ranked & Reviewed)
  • Free Forex Account Without Deposit in Autumn of 2023.
  • Best Forex Affiliate Programs in 2023.
  • Best Forex Brokers by Monthly Traffic of 2023
  • Brokers That Accept PayPal Deposits
  • Forex brokers reviews
  • Investment
  • Education

Forex social network

  • RSS
  • Twitter
  • FxIgor Youtube Channel
  • Privacy Policy
  • Contact us

Spanish language

Spanish language website
Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Trading such products is risky and you may lose all of your invested capital. Before deciding to trade, please ensure that you understand the risks involved, taking into account your investment objectives and level of experience.

Copyright Forex.in.rs 2007

Privacy Policy