The NFP is often known as the daddy of the news releases. Historically it has generally had a big effect on the currency market on release. It is the perhaps the best indicator of the strength of the labour market. Generally the bigger the deviation from the expectations, the bigger the move, but not always. The NFP is released once a month, on the first Friday of the month. The full report also includes estimates on the average work week and weekly earnings of these employees. This news release presents a good trading opportunity and the market can be relatively easy to predict if there is a big deviation in the numbers. However, when the numbers are very close it can be very volatile and unpredictable. In recent month’s, there have been revisions to the previous months numbers which has made trading the report more difficult.Here are some of the historic charts:
July 2006
Expected: 175,000
Actual: 121,000
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Oct 2006
Estimate: 120,000
Previous: 51,000
Actual: 92,000
Revision to Previous: 51,000 upto 148,000
