WHY TRADE NON FARM PAYROLL (NFP) EACH MONTH

in nonfarmpayroll •  6 years ago 

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Good Evening,

Platinum Subscribers

I hope you all have a wonderful bank holiday weekend in August and happy labour day to all of you in the US. The month of August has been an extremely interesting month for the US dollar, we have seen a major swing in favour of the dollar with all the major currencies falling against the dollar.

This has in part been due to falling gold prices which has propped the price of the dollar higher as well as trade discussion between the US and China as well as the EU.

This months sentiment shouldn’t differ much even with this NFP result being released as the US economy remains strong and the economic projections are yet to be released till the end of September.

THE NON FARM PAYROLL REPORTS

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 blog for beginners 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 forex trading 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 fx blog 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. If you would like to see how we do the NFP Trade Live, Book a free session Today!

NON FARM PAYROLL REPORT LAST MONTH

According to the Non Farm Payroll report released in August, for the month of July, the Non Farm Payroll Employment Change produced lower figures than expected, and that didn’t materially change expectations for the Economy. The July non farm payroll report came out at 157K, against a forecast of 191K.

NON FARM PAYROLL MARKET SENTIMENT

Fundamentals is a big part of currency trading, and Sentiment is built on currency market trends. The last Non Farm Payroll report was a weak one. However, the Non Farm Payroll report to-be-released on Friday 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.

https://www.cnbc.com/video/2018/09/05/trumps-economy-heres-where-he-gets-credit-jobs-growth-gdp-fed-stock-market-wall-street.html

NON FARM PAYROLL FOREX TRADING STRATEGY

How to Trade the Euro on NFP:

The expected number for September in the NFP report to be released this Friday is 193K. The deviation figure to trade the Non Farm Payroll is +30/-30.

Let me explain what this means:

The Bear Trade

If the actual number on NFP is above 223K, compared to the estimated 193K, sell the EUR/USD with 25 pips stop loss.

The Bull Trade

If the actual number on NFP is below 163K, compared to the estimated 193K, buy the EUR/USD with 25 pips stop loss.

How to Trade the Yen on NFP:

The expected number is 193k. The deviation figure to trade the Non Farm Payroll is +30/-30.

The Bull Trade

If the NFP number is above 223K, buy the USD/JPY with 25 pips stop loss.

The Bull Trade

If NFP number is below 163K, sell the USD/JPY with 25 pips stop loss.

TRADE THE NFP LIVE WITH A PLATINUM TRADER

How to become a profitable Trader.

If you are a new trader and would like to learn how to trade, then sign up today to our 2-day free Foundation to Forex Trading Course. We have just introduced this as in the last month we have had a lot of inquiries on learning how to trade the financial markets. We can get you on the successful path of becoming a Financial Trader.

Hopefully, you have enjoyed today’s article and have gained great knowledge about trading and how to trade.

See you soon!

Have a fantastic day!

Nisha Patel

Live from the Platinum Trading Floor.

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