Release Explanation: A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number of paid U.S. workers of any business. The report excludes the following employees:

The NFP impacts the Market with huge volatility because of the constant revisions to the previous reporting periods. The accompanying Employment % number tends to be much more reliable in its monthly report. The Average Hourly Earnings will add to, or contain the impact of the number of jobs created. These 3 components go to make for explosive NFP Fridays.

Outside of the Interest Rate Statement, this is the most important guide for US$ Traders planning for the weeks and months ahead as the Labor Market will indicate the potential strength of future economic growth. A strong economy usually equates to a strong currency.

Trade Desk Thoughts: Nonfarm payroll employment continued to fall sharply in February and the unemployment rate rose from 8.1% to 8.5%, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. However, the numbers were basically in line with what the street was expecting and probably better considering how bad the weekly unemployment numbers have been recently.

Employment is considered to be a lagging indicator, said Matthew Carniol, chief currency strategist at The general consensus is that employment will weaken even after the economy starts to recover, which is what happened after the 2001 recession ended. The numbers today fit in with what's been happening recently with the data; the rate of decline is slowing.

Just over 5 million jobs have been lost since the start of the recession in December 2007, with well over half (3.2 million) of the decrease occurring in the last 5 months and with over two million of those losses occurring in the last three months.

January was revised to show a steeper loss of 741,000 jobs, the third highest on record.

The unemployment rate rose to 8.5%, the highest since November 1983. But when marginally attached and involuntary part-time workers are included, the rate of unemployed or underemployed workers hit 15.6% last month, up from 14.8% in February and more than six percentage points higher than it was one year ago.

Average hourly earnings increased a modest $0.03, or 0.2%, to $18.50. That was up just 3.4% from one year ago, a sign that inflation isn't a threat.

Hiring last month in goods-producing industries fell by 305,000. Within this group, manufacturing firms cut 161,000 jobs, bringing the total since the recession began to 1.5 million.

Construction employment was down 126,000 last month.

Service-sector employment plunged 358,000. Business and professional services companies shed 133,000 jobs, the fifth-straight six-figure loss, and financial-sector payrolls were down 43,000.

Retail trade cut 47,800 jobs, while leisure and hospitality businesses shed 40,000 as households cut back on discretionary spending. Temporary employment, a leading indicator of future job prospects, fell by more than 70,000.

Health care payrolls rose 13,500.

The government shed 5,000 jobs last month due to cutbacks in state and local payrolls.

Forex Technical Reaction: S&P futures rose initially, and then fell as the market searched for support. The euro, pound and A$ followed the move as well.