## Nonfarm News Briefing: The Key to Reading the Financial Market

The Nonfarm report is not just a dry number in an economic report. It is a lively indicator published monthly by the U.S. Bureau of Labor Statistics, showing how many new jobs are created in the U.S. economy (excluding agriculture). Every time the report is released, the financial markets shake, because it is one of the most important pieces of information affecting USD prices, stocks, cryptocurrencies, and most other assets.

## Why Is the Nonfarm News So Important?

The question is: why can a job number shake the entire global market? The reason is simple - **The Nonfarm report is a beacon signaling the health of the U.S. economy**.

When employment figures are stronger than expected, it suggests the economy is overheating. The Fed will have reason to raise interest rates to control inflation. This makes the USD stronger and risky assets (such as stocks, cryptocurrencies) more likely to decline.

Conversely, if the report is weaker than expected, it signals the economy is slowing down, and the Fed will be motivated to cut interest rates to stimulate growth. At this point, the USD weakens and risky assets tend to be more favored.

## How Exactly Does the Nonfarm News Affect Investors

Traders and investors use the Nonfarm News information to:

- **Forecast monetary policy movements**: Strong employment data = Fed may raise interest rates = USD appreciates, stocks/crypto face pressure
- **Adjust investment portfolios**: If expecting a weak report, they may reduce risky assets before the announcement
- **Begin trading**: Some traders wait until the release day to trade, as extreme price volatility creates profit opportunities

## The Process of Collecting and Publishing the Nonfarm News

The U.S. Bureau of Labor Statistics conducts monthly surveys with thousands of businesses and households to gather data. The report includes:

- Number of new jobs created outside agriculture
- Current unemployment rate
- Average wage increase
- Average working hours

These figures are published on **the first Friday of each month at 8:30 AM Eastern Time**. Everyone from large investment funds to individual traders waits for this moment like the starting gun of a race.

## Nonfarm News Compared to Other Economic Reports

Although there are many important economic indicators like GDP, CPI (Consumer Price Index), or ADP employment report, **The Nonfarm News remains the market impact champion**.

Why? Because employment is an extremely sensitive factor. It not only reflects the current economic situation but also hints at what the Fed will do next. While GDP is released with a delay (at least a few weeks later), the Nonfarm report is published quickly, making it the most critical "information hub" for the market.

## Risks When Trading Around the Nonfarm News

Although this information is valuable, it also carries **significant risks**:

- **Extreme price volatility**: Immediately after the report, prices can jump in seconds
- **Slippage and surprises**: Unprepared traders can be swept in the wrong direction
- **Liquidity risk**: In the first seconds after release, liquidity may be low, causing orders to execute at less ideal prices

Therefore, many experienced traders usually **avoid trading right at the release time** and prefer to wait for the market to stabilize before entering positions.

## What Is the Nonfarm News in the Global Context?

A natural question arises: why are investors worldwide interested in a U.S. report? The answer is **USD is the global reserve currency**. When the Fed changes monetary policy, it affects global capital flows. Other countries often have to adjust their policies to keep up.

For cryptocurrency investors specifically, the Nonfarm News impacts indirectly but strongly. When the Fed raises interest rates, capital flows out of high-risk assets like crypto. When the Fed lowers rates, capital tends to flow into these assets seeking higher yields.

## How to Use the Nonfarm News in Trading Strategies

To optimize the use of Nonfarm News information, investors can:

1. **Follow forecasts before the report**: Analysts forecast data beforehand, and comparing forecasts with actual results is crucial
2. **Prepare a plan in advance**: If expecting a weaker report, prepare strategies to benefit from USD weakening
3. **Use stop-loss orders**: Due to unpredictable volatility, using stop-loss is essential
4. **Avoid putting all eggs in one basket**: Do not allocate all positions before the release

## Summary

What is the Nonfarm News? It is a seemingly simple report but one of the **most powerful tools for reading the financial markets**. By closely monitoring employment data, unemployment rates, and wage increases, investors can better understand Fed’s monetary policy trends and adjust their trading strategies accordingly.

However, remember that **information is a double-edged sword**. It can bring enormous profit opportunities but also cause losses if not used wisely. Proper preparation, strict risk management, and always having a backup plan are keys to success.