Non-Farm Payroll [NFP] Forex Trading Strategy

Non Farm Payroll Fx Trading Strategy

Good morning Platinum Traders,

I do hope everyone has enjoyed their long Easter breaks. we have a shorted but exciting online forex trading week and month ahead with NFP, FED Chair Powell and Governor Carney speaking as well as several interest rate decisions across the varying central banks.

So, it’s going to be a busy month. It’s been a while since we have opened up a live fx trading event to our non-members for NFP Market.

So, this week we will be running an exclusive, interactive live session with an aim to take 150 pips from this event which will, of course, focus on our NFP trading strategy.

If you join us for this live trading event we will be looking at how to trade the Yen and Euro during NFP.

TRADE NFP

LIVE WITH

US

FRIDAY 6TH APRIL

13:30 GMT

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WHY TRADE NFP (NON FARM PAYROLL) EACH MONTH

The non-farm payrolls report is one of the most-anticipated economic news reports in the forex market. 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.

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.

NFP REPORT LAST MONTH

According to the report released in March, for the month of February, the Non-Farm Employment Change produced better figures than expected, and that didn’t materially change expectations for the Economy. The February report came out at 313K, against a forecast of 205K.

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 Trump 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

Live Trading Event on NFP - 150 Pips Target - Friday 6th April 13:30 GMT

How to Trade the Euro on NFP:

The expected number for April in the NFP report to be released this Friday is 190K. The deviation figure to trade the Non-Farm Payroll is +50/-50.

Let me explain what this means:

The Bear Trade

If the actual number on NFP is above 240K, compared to the estimated 190K, sell the EUR/USD with 25 pips stop loss.

The Bull Trade

If the actual number on NFP is below 140K, compared to the estimated 190K, buy the EUR/USD with 25 pips stop loss.

How to Trade the Yen on NFP:

The expected number is 190k. The deviation figure to trade the Non-Farm Payroll is +50/-50.

The Bull Trade

If the NFP number is above 240K, buy the USD/JPY with 25 pips stop loss.

The Bear Trade

If NFP number is below 140K, sell the USD/JPY with 25 pips stop loss.

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.

THE PLATINUM WAY

At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by fx trading part-time. We trade in an Institutional Way by letting the currency market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the currency market. We can ensure using this style of online forex trading your currency trading will make a turnaround as you will become much more consistent.

If you want to trade like the professionals do, making consistently profitable returns from your online trading, get in touch with us and we will demonstrate live exactly how we approach the currency markets.

Download our free ebook to read about the various Trading Patterns that work in the Financial Market. Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter.

Hopefully, you have enjoyed today’s article. Thanks for reading!

Have a fantastic day!

Nisha Patel

Live from the Platinum Trading Floor.

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The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.