The nonfarm payroll (NFP) report is a key economic indicator for the United States and represents the total number of paid workers in the U.S. excluding those employed by farms, the federal government, private households, and nonprofit organizations. The nonfarm payroll report consistently causes one of the largest rate movements of any news announcement in the foreign exchange (forex) market.
As a result, many analysts, traders, funds, investors, and speculators anticipate the NFP number and the impact that it will have on forex. The NFP report is typically released on the first Friday of each month, providing the total monthly increase or decrease in paid U.S. workers across most businesses.
Increasing numbers may show economic expansion but may also give investors reason to be concerned about inflation and decreasing numbers suggest a broader economic concern.