Aftermath of NFP Release: What’s Next for the Markets?
Last week Friday, aka the first Friday after month-end, April 4, 2025, dropped one of the most anticipated economic reports on Wall Street — the U.S. Non-Farm Payrolls (NFP).
If you trade forex, stocks, or even just casually stalk financial headlines, you know that NFP days can be pure chaos energy. So now that the dust has settled, let’s unpack what happened and what could be next.
The NFP Recap: Fire or Flop?
Friday’s NFP data came in like a mic drop from the Fed’s favorite economic DJ. Whether it surprised or disappointed depends on your perspective and market positioning. But here’s what mattered:
Jobs added: The headline number was 228,000 jobs in March, beating expectations of 140,000 jobs.
Unemployment rate: Shifted to 4.2%, which is a subtle (or major) signal of labor market health.
Wage growth: This one’s a biggie — it reflects inflationary pressure and helps shape Fed expectations.
The market's reaction? Classic post-NFP whiplash. Dollar volatility spiked. Yields danced. Gold either chilled or panicked. Equities tried to figure out if bad news is still good news, or if we’re back to good news being just… good?
So, What’s Next?
Here’s what traders and investors need to watch now that NFP is in the rearview:
1. Fed Rate Path — Still in Focus
The Fed is laser-focused on inflation and employment. If NFP came in strong, rate cut hopes might get kicked down the road. If it was weak? Markets will lean into the “dovish Fed” narrative. Keep your eyes peeled for Fed speakers this week — their tone will be everything.
2. CPI Incoming
The Consumer Price Index (CPI) is lurking just around the corner. That’s the next big inflation checkpoint. If CPI comes in hot, it could reinforce a higher-for-longer Fed. If it cools? Buckle up for a potential rally in risk assets.
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USDJPY H4 Chart |
3. Dollar Direction
The greenback lives and breathes NFP. A bullish print gives the USD wings; a bearish one makes it stumble. Watch key pairs like EUR/USD, USD/JPY, and GBP/USD — they’re all mood ring charts for dollar sentiment.
4. Risk Appetite Across Assets
Equities, crypto, gold — all of them are adjusting to the NFP vibes. Are investors feeling risk-on or risk-off? NFP gives a short-term pulse, but the next few sessions will show if the mood sticks.
Final Thoughts: Trade the Reaction, Not the Hype
Post-NFP moves can be deceptive. The real play? Let the initial volatility pass, then trade the second reaction — the one after the market has digested all the headlines, speeches, and spicy Twitter takes.
Whether you’re scalping, swing trading, or just spectating from the sidelines, the post-NFP landscape is full of opportunity. Just remember: stay nimble, stay informed, and don’t marry your bias — the market sure won’t.
Catch you on the next data drop!
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