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May 17 – According to a press release from the Hong Kong Special Administrative Region Government on May 17, Financial Secretary Paul Chan Mo-po will depart for three European cities tomorrow (May 18) in the early hours of the morning, including Paris, France; Brussels, Belgium; and Zurich, Switzerland, to introduce and promote Hong Kongs new developments and opportunities as an international financial center, aiming to attract investment and promote exchanges. Chan will depart from Zurich at noon on May 22 (Zurich time) and return to Hong Kong on the morning of May 23 (Hong Kong time).On May 17, it was reported that Samsung Electronics and its South Korean labor union will resume wage negotiations next Monday with the participation of government mediators, a move that may alleviate market concerns about a potentially destructive strike by the tech giant. "A single days shutdown of Samsung Electronics semiconductor plants is expected to cause direct losses of up to 1 trillion won (approximately US$668 million)," South Korean Prime Minister Kim Min-seok said on Sunday after an emergency meeting with ministers. "More worrying is that a short-term shutdown of semiconductor production lines could lead to months of production disruptions." Kim added that if the strike results in the disposal of materials, the market fears the economic losses could extend to as much as 100 trillion won. Under regulations, if the South Korean government determines that a labor dispute may harm the economy or peoples livelihoods, the Minister of Labor can issue an emergency arbitration order. This order immediately halts industrial activity for 30 days, while the National Labor Relations Committee initiates mediation and arbitration. This measure is rarely used.On May 17th, the 2026 World Telecommunication and Information Society Day Conference was held in Wuhan, Hubei Province. Zhong Zhihong, Chief Engineer of the Ministry of Industry and Information Technology, stated that in recent years, Chinas information and communication industry has made solid progress in modernization, building the worlds largest, most widely covered, technologically advanced, and high-performance information and communication network. 5G, gigabit optical networks, and the Industrial Internet (885783) have significantly helped enterprises reduce costs, improve quality, increase efficiency, and save energy. A series of practical measures to address public concerns and improve public welfare have been implemented effectively, providing strong support for accelerating the development of new productive forces and promoting new industrialization. The conference released important achievements such as the "Ten Practical Measures for Heartwarming Information and Communication Services in 2026" and the nationwide application of the National Emergency Communication Convergence Access Platform.Israel Defense Forces: Initial reports indicate that alarms have been raised regarding enemy aircraft infiltration in the Miskaf-Am area. Further details are under investigation.On May 17th, it was reported that the USS Gerald R. Ford aircraft carrier returned to Naval Station Norfolk, Virginia, on May 16th, concluding its 11-month deployment. According to US sources, the USS Gerald R. Fords deployment lasted 326 days, breaking the record for the longest deployment by a US aircraft carrier since the Vietnam War. Since June of last year, the USS Gerald R. Ford has participated in US military operations against Venezuela and Iran. The extended deployment has led to fatigue among the USS Gerald R. Ford and its crew, resulting in numerous ship malfunctions. It is reported that the USS Gerald R. Ford issued 32 requests for wastewater treatment system maintenance by 2025. In March of this year, a fire broke out in the ships stern laundry room, injuring three sailors and requiring treatment for smoke inhalation by more than 200 others. The USS Gerald R. Ford was subsequently forced to withdraw from the Middle East theater of operations, undergoing repairs and maintenance in ports in Greece and Croatia.

NFP and Forex: What is NFP and How Does It Work?

Larissa Barlow

Mar 25, 2022 14:57

Nfp And Forex Trading: Key Points of Discussion 

  • The announcement of Non-Farm Payrolls (NFP) creates volatility in the FX market.

  • The NFP calculates the net change in employment jobs.

  • Forex traders utilize an economic calendar to anticipate the publication of the NFP.

  • What is a non-governmental organization (nfp)?

 

Non-farm payrolls (NFP) are a critical economic indicator for the US economy. It is the amount of new employment created, excluding agricultural workers, government employees, private home employees, and nonprofit organization employees.

 

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In general, NFP announcements produce significant volatility in the FX market. Typically, the NFP data is provided on the first Friday of each month at 8:30 a.m. ET. This article will discuss the importance of non-farm payrolls in economics and how to use them into a forex trading strategy.

 

What Effect Does The NFP Have On Forex?

 

NFP data is significant since it is issued monthly, giving it an excellent predictor of the economy's present status. The Bureau of Labor Statistics releases the statistics, and the next release may be found on an economic calendar.

 

The Federal Reserve Bank views employment as a critical indicator. When unemployment is elevated, policymakers frequently pursue an expansionary monetary policy (stimulatory, with low interest rates). An expansionary monetary policy seeks to boost economic production and employment.

 

Thus, if the unemployment rate is greater than usual, policymakers will attempt to stimulate the economy. Stimulatory monetary policy means lowering interest rates and decreasing demand for the Dollar (money flows out of a low yielding currency). To understand how this works in detail, please read our article on how interest rates affect FX.

 

The chart below illustrates how volatile FX can be following the announcement of the NFP. The projected NFP result for March 8, 2019 was 180k (job additions), however the actual result was only 20k. As a result, the value of the Dollar Index (DXY) decreased and volatility rose.

 

image.png 

 

Forex traders must exercise caution when it comes to data releases such as the NFP. Traders may be stopped out as a result of the abrupt surge in volatility. Spreads rise in lockstep with volatility, and larger spreads might result in margin calls.

Which Currency Pairs Are Affected the Most by the NFP

Because the NFP data is a leading predictor of American employment, it has the greatest impact on currency pairs that contain the US Dollar (EUR/USD, USD/JPY, GBP/USD, AUD/USD, and USD/CHF, among others).

 

Other currency pairings also see an uptick in volatility following the release of the NFP, and traders must be mindful of this risk of being stopped out. The chart below illustrates the CAD/JPY exchange rate during the publication of the NFP data. As you can see, even if a trader is not trading a currency pair tied to the US Dollar, a rise in volatility might force a trader out of their position.

 

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Dates for the Release of Non-Farm Payroll

NFP figures are typically released by the Bureau of Labor Statistics on the first Friday of each month at 8:30 a.m. ET. On the Bureau of Labor Statistics' website, you may see the release dates.

 

We propose adopting a pull-back strategy rather than a breakthrough approach because to the volatility nature of the NFP announcement. Before entering a trade using a pullback technique, traders should wait for the currency pair to retrace.

 

Using the same scenario as earlier (NFP findings of 20,000 vs. 180,000 predicted), we anticipate a depreciation of the US Dollar. In the example below, we will use the EUR/USD currency pair. We predict the EUR/USD will rise as a result of the worse-than-expected NFP report.

 

image.png 

Trading Nfp Data Releases: Best Practices & Additional Reading

The following are some pointers to keep in mind while utilizing NFP data releases to guide your forex trading:

 

  1. Each month, the NFP data is provided on the first Friday.

  2. Increased volatility and widening spreads are accompanying the announcement of the NFP data.

  3. Currency pairings that are not tied to the US Dollar may also see greater volatility and spread widening.

  4. Trading the NFP data release can be risky owing to increased volatility and potential spread widening. To avoid being stopped out, we recommend applying the right leverage, or none at all.

 

Other significant data releases to keep an eye on include the following:

 

While the NFP often influences the market, other major data releases include the CPI (inflation), Fed funds rates, and GDP growth.

 

If you're interested in learning more about trading the news and data releases, check out our beginner's guide to trading the news. Additionally, we recommend reading our tutorial on the characteristics of great traders to avoid the number one error traders make while trading forex.

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