FOREX TRADING NON-FARM PAYROLL [NFP] FOREX TRADING STRATEGY
WHAT IS NON FARM PAYROLL?
The NFP is a report, released by the US Department of Labour. The report is usually published on the first Friday of every month. The data in this report is an indicator of the employment situation in the US. It measures the change in the number of newlyemployed people in the United States (excluding workers in the farming industry) since the previous month, hence the name: Non-Farm Payroll.
A number which is higher than the marketforecast is considered Bullish for the US Dollar, and lower than the forecast is Bearish.
WHY TRADE NFP (NON FARM PAYROLL) EACH MONTH
The non-farm payrolls report is one economic news reports in the forex market.
of
the
most-anticipated
It is published on the first Friday of the month at 8:30 AM Eastern time by the U.S. Bureau of Labor Statistics.
The data in this report is an indicator of the employment situation in the US. It measures the change in the number of newly-employed people in the United States (excluding workers in the farming industry) since the previous month, hence the name: Non-Farm Payroll
As one of the most-anticipated economic news events of the month , currency pairs (especially those involving the US dollar) typically see big price movements in the minutes and hours after the data is released.
Platinum Traders always look at this as a great opportunity with a sound strategy to take advantage of the volatility.
WHY TRADE NFP (NON FARM PAYROLL) EACH MONTH
If you are new to Forex, then you need to understand that the release of the Non-Farm Payroll reports every month is a currency market moving event.
The Progress of the US Economy is measured by 12 Major Fundamental Events, and the Non-Farm Payroll is a leadingindicator that measures the job-creation aspect of the Economy.
Job creation is an important leading indicator of consumer spending, which in turn accounts for a majority of overall economic activity.
Typically, Platinum Traders will aim for 150 pips trading this event, so it certainly gets your month off to a great start when traded correctly.
MARKET SENTIMENT
Fundamental is a big part of currency trading, and Sentiment is built on currency market trends. The last NFP report was a strong one, and it helped the overall picture, which is the fact that both the Economy and Labour Market are in good shape.
However, the NFP report to-be-released tomorrow will have its numbers affected by the aftermath of the recent trade wars that have been implemented by President Tru mp and China.
The impact of the trade wars and regulations will probably make the use of this report very limited, and there should be no changes to policy or rate hike by the FED for the next quarter.
NFP TRADING STRATEGY ď ľ
QUICK 4 TIPS FOR TRADING NFP
1)
Always keep the Institutional News Feed open.
2)
Be careful of being in trades an hour before and after NFP.
3)
Do not trade USD/CHF on NFP days
4)
Make sure you have your eyes on the clock. As soon as the news event comes out there will be a spike.
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