JustChartsWhat Is NFP (Non-Farm Payrolls) and How Does It Affect Forex and Gold?
NFP (Non-Farm Payrolls) is the US jobs report, published by the Bureau of Labor Statistics, usually on the first Friday of each month at 8:30 a.m. New York time. A stronger-than-expected number tends to lift the US dollar and weigh on gold, because it makes higher US interest rates more likely; a weaker number tends to do the opposite.
What is in the NFP report?
The report’s official name is the Employment Situation. It counts how many jobs US employers added or lost in the previous month, excluding farm workers, private household employees and a few other groups — hence “non-farm”. Traders focus on four numbers:
- Headline payrolls — the change in jobs, compared with the economists’ forecast.
- Unemployment rate — from a separate household survey.
- Average hourly earnings — wage growth, a key inflation signal.
- Revisions — changes to the previous two months, which can be as important as the new number.
When is NFP released?
Usually on the first Friday of the month at 8:30 a.m. Eastern Time. That is 13:30 UTC in winter and 12:30 UTC while the US is on daylight saving time — normally 1:30 p.m. in London. The schedule can shift around holidays, so check the economic calendar for the exact date — it is marked as a high-impact USD event.
Why does NFP move the markets so much?
The US Federal Reserve’s job is to keep both employment and inflation in check. A strong jobs market suggests the economy can handle higher interest rates, and strong wage growth can feed inflation. So the chain usually runs:
Jobs surprise → changes in expected Fed interest rates → US bond yields → US dollar → everything priced in dollars
How NFP typically affects…
| Market | Stronger than forecast | Weaker than forecast |
|---|---|---|
| US dollar (DXY) | Up | Down |
| EUR/USD, GBP/USD | Down | Up |
| USD/JPY | Up | Down |
| Gold (XAU/USD) | Down | Up |
These are tendencies, not rules. What matters is the result compared with expectations, and the market weighs all the parts together: a strong headline with weak wages or big downward revisions can produce the “wrong” reaction. Sometimes a very strong report raises inflation fears enough that gold rises alongside the dollar.
How do traders handle NFP day?
- Know the time. Many traders simply avoid opening new positions in the minutes before the release.
- Expect wide spreads. Liquidity thins just before the number, and spreads can widen sharply for a few seconds.
- Reduce size. If you hold a position through the release, smaller size and wider stops reduce the chance of being stopped out by the first spike.
- Watch the follow-through. The first move is often reversed. Many traders wait 15–30 minutes for the market to digest the details.
Frequently asked questions
What time is NFP released in UTC?
NFP is released at 8:30 a.m. New York time: 12:30 UTC while the US is on daylight saving time (mid-March to early November) and 13:30 UTC the rest of the year. Convert from UTC to your own time zone.
Is a high NFP number good for the US dollar?
Usually, yes. A number above the forecast suggests a strong economy and higher interest rates, which typically supports the dollar. The market also looks at wages, the unemployment rate and revisions, so the reaction is not guaranteed.
Why does gold fall when NFP is strong?
Gold pays no interest, so it becomes less attractive when strong jobs data pushes up expected interest rates and bond yields. It is also priced in dollars, so a stronger dollar tends to push the gold price down.
How often is NFP released?
Once a month, normally on the first Friday.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
See the next NFP release with a live countdownThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.