The data that shows how many jobs the US added last month, and the one that moves the market most each month.
Japan time (JST, winter)22:30
Japan time (JST, summer)21:30
Importance★★★
FrequencyOnce a month
Release dateUsually the first Friday of each month
Released byUS Bureau of Labor Statistics (BLS)
1A 30-second chat
JUDITHWhy is the jobs report so important?
JADEThe US central bank (the Fed) sets interest rates by looking at "jobs" and "prices." The answer on jobs comes out here every month
JUDITHIf the numbers are good, does the price just go up?
JADELook at the gap vs. forecast. Revisions to the previous two months also come out at the same time, so even if this month is good, big downward revisions to past months can send price the other way.
2Just check this
1
Nonfarm payrolls (NFP)
How many jobs were added last month. The key point is how far above or below the forecast it is
2
Unemployment rate
The share of people who want to work but have no job. A rise is a sign of a weak economy
3
Average hourly earnings
Wage growth. Faster growth makes inflation more likely to stick around
3How does the market move?
Price moves on the size of the gap vs. forecast, more than on whether the result is good or bad
▲ Stronger than expectedStrong jobs → rate cuts move further away → US rates ↑ → USD rises(USD/JPY ↑)· Nasdaq tends to fall
▼ Weaker than expectedWeak jobs → rate cuts get closer → US rates ↓ → USD falls(USD/JPY ↓)· Nasdaq tends to rise
These are common patterns. Depending on the news at the time, price can move the other way.
The direction is different every time. Right after the release, price can swing either way.
4Prop firm watch-outs
At the moment of the release, spreads can widen sharply and your stop loss may fill at a worse price than planned. The US jobs report (NFP) is the wildest release of the month, so a firm rule is not to open new large positions before it.
FUNDED7 rules:Holding trades through a release is allowed, but opening a new large position right before a release is a no-go (Official FAQ)
Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ)
The rules for not failing on data release days are in the illustrated rulebook Add us on LINE to get the rulebook and getting-started guide for free. We also hold a free Zoom intro session for beginners every Friday from 22:00