One of the significant fundamental indicators in forex trading is Nonfarm Payroll Data, in short NFP. The NFP indicates the number of jobs from the manufacturing, construction and goods-producing sectors of the U.S. economy that were added or lost over the previous month.

The numbers represent the total amount of paid employees in USA, excluding the following:

1. Private household workers

2. Nonprofit organizations

3. Farms

4. General government employees

The report also includes the estimates on the average work week and the average weekly salaries of all non-farm employees. During the NFP release the market can experience high volatility and therefore create potential profit opportunities to the traders. Not all traders, however, are brave enough to take advantage of NFP release due to increased risk such news portray.

Forex market revolves around price behavior and decision making. In order to be successful trader, it is crucial not only to know the formula for market movement, but also understand what is behind it. Without clear perception of what makes prices move, your trading career is doomed. So how does this mysterious formula look like? What is behind it? Which errors can a trader avoid with the understanding price action? Read more...