Good Morning,
Platinum Subscribers
The Non-Farm Payroll reports is one of the most-anticipated economic news reports in the forex market. The non farm payroll report 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 non farm payroll 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 non farm payroll report as a great opportunity with a sound strategy to take advantage of the volatility.
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 leading-indicator 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.
NON FARM PAYROLL REPORT LAST MONTH
According to the Non Farm Payroll report released in June, for the month of May, the Non Farm Payroll Employment Change produced higher figures than expected, and that didn’t materially change expectations for the Economy. The May non farm payroll report came out at 223K, against a forecast of 189K.
NON FARM PAYROLL MARKET SENTIMENT
Fundamental is a big part of currency trading, and Sentiment is built on currency market trends. The last Non Farm Payroll report was a strong one, the fact is that both the Economy and Labour Market are in good shape. However, the Non Farm Payroll report to-be-released tomorrow will have great significance due to the recent USD bulls in the market and how volatile the market has reacted to the buying up of the USD.
NON FARM PAYROLL TRADING STRATEGY
How to Trade the Euro on NFP:
The expected number for June in the NFP report to be released this Friday is 200K. The deviation figure to trade the Non Farm Payroll is +45/-45.
Let me explain what this means:
The Bear Trade
If the actual number on NFP is above 245K, compared to the estimated 200K, sell the EUR/USD with 25 pips stop loss.
The Bull Trade
If the actual number on NFP is below 155K, compared to the estimated 200K, buy the EUR/USD with 25 pips stop loss.
How to Trade the Yen on NFP:
The expected number is 200k. The deviation figure to trade the Non Farm Payroll is +45/-45.
The Bull Trade
If the NFP number is above 245K, buy the USD/JPY with 25 pips stop loss.
The Bull Trade
If NFP number is below 155K, sell the USD/JPY with 25 pips stop loss.
QUICK 4 TIPS FOR TRADING NON FARM PAYROLL
- of being in trades an hour before and after NFP.
- Do not trade USD/CHF on Non Farm Payroll days
- Make sure you have your eyes on the clock. As soon as the news event comes out there will be a spike. Always keep the Institutional News Feed open.
- Be careful
TRADE THE NFP LIVE WITH A PLATINUM TRADER
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Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Nisha Patel
Live from the Platinum Trading Floor.