Jobs and growth data tell central banks how strong an economy is, feeding directly into rate decisions. Two releases dominate: US Non-Farm Payrolls and GDP.
Non-Farm Payrolls (NFP)
Released monthly, NFP reports US job creation alongside the unemployment rate and wage growth. As a gauge of economic health and inflation pressure, it's one of the most volatile events of the month — spreads widen and price can whip violently in both directions.
GDP
Gross Domestic Product measures total economic output — the broadest growth gauge. Strong growth supports a currency (and tighter policy); contraction pressures it. GDP is less frequent but sets the bigger backdrop against which other data is read.
How to handle them
These are high-impact, high-slippage events. For most traders the wise approach is to be flat or small across the release and trade the clearer trend that often follows once the dust settles, rather than gambling on the number itself.
Key takeaways
- NFP (monthly US jobs) is among the most volatile, slippage-prone events.
- GDP measures overall growth and sets the broader policy backdrop.
- Trade small or flat across these; the post-release trend is often cleaner.