How to Trade the Non-Farm Employment Change Index Successfully in Forex

In this article we want to examine another set of economic indicators that affect the Forex market, this index is called Non-Farm Employment Change. The Non-Farm Employment Change index shows us the amount of income and expenditure and economic growth in sectors other than agriculture. This index means employment changes in the non-farm sector. In many cases, the non-farm employment change index is also known by the abbreviation NFP.

How to trade the NFP Index?

1_ If the value of the NFP index that is published is higher than its previous value and the predicted value, it will make our desired currency stronger.

2_ If the value of the NFP index is lower than its previous value and the predicted value, it will cause our desired currency to weaken.

Consider the following example

Photo by Forex Factory

As you can see in the chart above, the value of the published non-farm employment change index is lower than the previous value and the forecast value, and this causes the USD to weaken.

Photo by Trading View

In the image above, you can see the chart of the USDJPY. With the release of the Non-Farm Employment Change index, its price has decreased. Because the value of the published index was negative and lower compared to the past and the predicted value, and this caused the price to decrease.

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