Prop firm news trading: NFP, FOMC and CPI rules

Economic events move the markets and create great trading opportunities. But there are specific events that traders should avoid.

In this article, we’ll go over the “Big 3” news events and why it’s best to avoid trading them.

What Are Big 3 News Events?

We refer to the three most volatile economic news events as the “Big 3 news events”. They are all high-impact (red) events from the economic calendar.

Non-Farm Payroll (NFP)

NFP is one of the three most volatile events in the economic calendar.

Released by the U.S. Bureau of Labor Statistics on the first Friday of each month at 8:30 AM EST, NFP is a monthly report showing how many jobs were added or lost in the US economy, excluding farm work, government, and non-profits.

During NFP, 50-100 pip movements in 1-2 minutes are a frequent event. For comparison, EURUSD typically moves 2-4 pips on a 1-minute and 5-minute timeframe with each price swing.

In February 2025, the unemployment rate rose to 4.1% as the U.S. economy only added 151,000 jobs. As a result, the EURUSD experienced its largest weekly rise since the financial crisis.

Federal Reserve Interest Rate Decisions (FOMC Meetings)

The Federal Reserve meets 8 times per year, approximately every six weeks, to decide whether to raise, cut, or maintain US interest rates.

These announcements are part of the 3 most volatile events from the economic calendar, as higher rates strengthen the dollar by attracting foreign investment, while cuts weaken it.

Traders also closely watch the FOMC statement and press conference for hints about future policy direction.

Inflation Data – Consumer Price Index (CPI)

CPI measures monthly changes in the cost of goods and services, making it a key indicator of inflation.

The FED’s main goal is price stability, and rising inflation data (above expectations) often triggers USD strength as traders price in potential interest rate hikes to combat rising inflation.