Nonfarm Payrolls May 2021 | Are forecasts still too high?

The Nonfarm Payrolls May 2021 are possibly the economic news release that often sees the highest volatility outside of a Central Bank Interest Rate Decision. 

This volatility is because of the strong correlation between Monetary Policy, Interest Rates and the US Jobs Market. 

The US Bureau of Labor releases the report with the number of new jobs created during the previous month, excluding agricultural businesses. 

Last months Nonfarm Payrolls 

Analysts expected the creation of around 266,000 new jobs. The consensus was short, and the actual number was 978,000. There was a strong reaction on the EURUSD, resulting in a 60 pip 5 min candle immediately after the release.

The EURUSD daily candle closed at 1.2162, up 0.81% for the day. 

Current Nonfarm Payrolls May 2021

This time around, analysts are forecasting 650,000 new jobs. Although this is a drop from the previous forecast, it is still over double the previous actual figure.

Nonfarm Payrolls always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.

Do you trade the NFP news release?

If you plan to trade The Nonfarm Payrolls May 2021Tweet us how you plan to tackle the volatility storm should it surface!

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