The monthly release of the NFP (Non-Farm Payrolls) figures is a highly anticipated moment for all traders. And this is with good cause, because the Non-Farm Payrolls has been historically known to shake up the market place quite a bit. Using a reliable NFP prediction strategy is something that many traders are after.
Just like most other news releases on the economic calendar, traders will use these figures to determine the strength or weakness of the underlying economy. NFP looks specifically at whether the US economy is expanding or contracting, based on the number of jobs added to the labour force. Having a NFP prediction strategy is a good way to be part of this action.
The NFP Prediction Strategy
This particular strategy has been tried and tested at Forex Watchers and Urban Forex. The videos above are two examples of live trading this strategy in a webinar.
The strategy itself is fairly straightforward. Find a correlating group and trade in the direction of the last daily candle. You can either choose to get in before the news is released or after. Both has it's pros and cons. Prior to the news spread are significantly lower, but there's the risk of the news spiking you out. After the news spreads will be higher, but you will have a bit more certainty on the direction - even when you miss a chunk of the move.
Final Words
Regardless of whether you intend to trade the news or maybe stand aside; remember NFP can be an exciting and will often bring unexpected volatility. If you do decide to trade, stick with your news trading plan and strategy, and always keep an eye on risk / reward levels. Because of the high excitement, emotions will come into play and it's not unwise to use a demo account for the first few times you trade NFP.
#UrbanForex - Be conscious of your trading!
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Editors’ Picks
EUR/USD holds above 1.1750 due to cautious trade before FOMC Minutes
EUR/USD holds ground after four days of little losses, trading around 1.1770 during the Asian hours on Tuesday. The pair remains steady as US Dollar moves little amid market caution ahead of the Federal Open Market Committee December Meeting Minutes due later in the day, which could offer insights into the Federal Reserve’s 2026 outlook.
GBP/USD finds key support near 1.35 despite year-end grind
GBP/USD remains bolstered on the high end as markets grind through the last trading week of the year. Cable caught a bullish tilt to keep price action on the high side of the 1.3500 handle, though year-end holiday volumes are unlikely to see significant progress in either direction as 2025 draws to a close.
USD/JPY rises back above 156.00, shrugs off Yentervention risks
USD/JPY is back in the green above the 156.00 region in Tuesday's Asian trading. The pair shrugs off impending risks of a forex market intervention by the Japanese officials. Volatility is expected to widen during the last trading week of 2025, and follow into early 2026 as holiday-thinned market volumes wreak havoc on general market trends.
Editors’ Picks
EUR/USD holds above 1.1750 due to cautious trade before FOMC Minutes
EUR/USD holds ground after four days of little losses, trading around 1.1770 during the Asian hours on Tuesday. The pair remains steady as US Dollar moves little amid market caution ahead of the Federal Open Market Committee December Meeting Minutes due later in the day, which could offer insights into the Federal Reserve’s 2026 outlook.
GBP/USD finds key support near 1.35 despite year-end grind
GBP/USD remains bolstered on the high end as markets grind through the last trading week of the year. Cable caught a bullish tilt to keep price action on the high side of the 1.3500 handle, though year-end holiday volumes are unlikely to see significant progress in either direction as 2025 draws to a close.
Gold rises on Fed rate cut bets, safe-haven flows
Gold price edges higher above $4,350 during the early European trading hours on Tuesday. The precious metal recovers some lost ground after falling 4.5% in the previous session, which was gold's largest single-day loss since October. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.
Solana risks correction within descending wedge as bearish bets rise
Solana hovers above $120 at press time on Tuesday after a nearly 2% decline on Monday. The SOL-focused Exchange Traded Funds see renewed interest after recording their lowest weekly inflow last week.
Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026
Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.
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