The US monthly employment report, released on the first Friday of each month, one of the most market-moving economic events in forex.
NFP measures the number of jobs added or lost in the US economy excluding agricultural workers. Strong NFP data typically strengthens the dollar; weak data weakens it. The report also influences Federal Reserve interest-rate expectations.
Spreads widen significantly in the minutes around the NFP release. Experienced traders either wait for the initial spike to settle before entering, or use options structures to position ahead of the event.