NFP Friday: What to Expect

NFP Friday: What to Expect

The release of the NFP data is hotly anticipated by traders each month because the figure is seen as key to gauging Fed monetary policy and therefore the US Dollar strength.

The NFP represents the total number of paid workers in the U.S. minus farm employees, government employees, private household employees and employees of non-profit organizations.

What to Expect for NFP December 2020 Figures?

The job creation forecast this time round is around 100,000 from 245,000 in November. 

If the prediction is accurate, job creation will have collapsed 85% in four months from a 661,000 average in September and October.  These results reflect the reality of the current COVID-19 lockdowns and restricted business activity. 

Vaccines continue to be rolled out in the U.S. and the combination of fiscal support and better control of COVID-19 should generate growth in the months to come.

What to Trade after the NFP?

The EUR/USD is the most heavily traded currency pair in the world, and therefore it typically provides the smallest spread and ample price movement for making trades.

During the NFP report, the EUR/USD, as well as other major currency pairs against the USD are a great choice to trade as they typically see the biggest impact.

Other currency pairs against the USD to consider are:

GBP/USD

USD/JPY

NZD/USD

AUD/USD

USD/CAD

USD/CHF

Please note that the currencies pairs do not act/react in the same way following every NFP report.  If you have not traded the NFP before, decide your strategy and practice in your demo account first. 

If you have any questions, please email our Education Centre.

If you have any questions or require any assistance, please contact one of our support team members via our Live Chat or email [email protected].

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