Understanding the Impact of NFP News on Forex Markets – June 2025 Report
The Non-Farm Payrolls (NFP) report, produced on the first Friday of each month, is one of the most highly watched economic indicators in finance and shows details of the employment situation throughout the United States labor market – with the exception of farm jobs, government jobs, private household employees, and employees for non-profit organizations.
Non Farm Payrolls Overview for June 2025
The NFP report released on July 3, 2025 for June 2025 reported the US economy added 225,000 jobs, above their forecast of 195,000 jobs. The unemployment rate held steady at 3.9% while average hourly earnings increased by 0.4% to show stable wage inflation. These numbers reflect a moderately strong labor market, while giving the Fed a little leeway in their call if they will raise interest rates again in the near future.
Forex Market Implications
The US Dollar (USD) immediately dropped with bullish momentum and looked for risk with the stronger than expected NFP data. Pairs like EUR/USD, GBP/USD and USD/JPY saw some action and volatility. Here’s what happened:
EUR/USD moved lower from 1.0820 to 1.0740 in minutes indicating USD strength.
USD/JPY moved higher from 159.20 to 160.45 showing investors moving further into USD.
Gold (XAU/USD) dropped sharply from $2,340 to $2,305 showing lower demand for safe haven assets.Importance of NFP
The NFP Report is a major input into Fed policy. Job creation could lead to tighter monetary policy to fight inflation. Job structure could create an ease in rates. Traders will be looking at this report minute-by-minute to see how much of a move it may create in interest rates, following the rates in the Forex market quickly after the release.
Trading in NFP
Traders use a number of strategies around NFP time.
Online during the release: High volatility means new traders should not be trading during the exact release time.
Wait for the pullback: Experienced traders may wait 15-30 minutes to enter a trade after the NFP report is released based on the direction that the market eventually takes.
Stop-loss is tight: the concern of slippage requires that if no tracking stops as well as tight stops.Compared to the last month’s job growth:
May 2025: 185,000 jobs added, 0.3% wage growth.
April 2025: 198,000 jobs added, 0.4% wage growthThe June report is just another month with continued job growth, but with a slightly stronger-than-expected number reflecting the USD’s continued strength, even in a slowing global economy, as growth is still established.
Summary
The June 2025 NFP release once again proved the powerful influence of the NFP/joined with strong employment and wage growth on currency pairs and commodities (gold, etc.) with greater than or lesser influences on other currency pairs too. Just like always, the trader should manage their risk and be very cautious when trading around NFP announcements.
The June 2025 NFP release once again proved the powerful influence of the NFP/joined with strong employment and wage growth on currency pairs and commodities (gold, etc.) with greater than or lesser influences on other currency pairs too. Just like always, the trader should manage their risk and be very cautious when trading around NFP announcements.
The June 2025 NFP release once again proved the powerful influence of the NFP/joined with strong employment and wage growth on currency pairs and commodities (gold, etc.) with greater than or lesser influences on other currency pairs too. Just like always, the trader should manage their risk and be very cautious when trading around NFP announcements.
The June 2025 NFP release once again proved the powerful influence of the NFP/joined with strong employment and wage growth on currency pairs and commodities (gold, etc.) with greater than or lesser influences on other currency pairs too. Just like always, the trader should manage their risk and be very cautious when trading around NFP announcements.
