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Fundamental Analysis
Apr 08, 2026
6 min read

The Impact of NFP on USD Pairs and Gold

Fundamental analysis drives the larger trend. Discover how the US Non-Farm Payrolls report heavily affects currency evaluation and gold.

What is Fundamental Analysis?

Fundamental analysis involves evaluating economic, financial, and geopolitical factors that influence currency values.

What is the NFP Report?

The Non-Farm Payrolls (NFP) report is released on the first Friday of every month by the US Bureau of Labor Statistics. It measures the number of jobs added or lost in the US economy in the previous month.

Why NFP Moves the Market

A strong NFP reading means the US economy is growing. The Federal Reserve is more likely to raise interest rates, making the USD more attractive.

  • USD pairs like EUR/USD fall when USD strengthens
  • Gold (XAUUSD) typically drops as USD strengthens
  • A weak NFP has the opposite effect
  • How to Trade NFP

  • Before the release: Avoid entering new trades 30 minutes before NFP.
  • At the release: Price can spike 50-100+ pips instantly. Not recommended for beginners.
  • After the release: Wait 15-30 minutes for volatility to settle, then look for a clear trend.
  • Fundamental analysis helps you understand the WHY behind major price moves. Combine it with technical analysis to confirm your entries.

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