WHY TRADE NON FARM PAYROLL (NFP) EACH MONTH

Non Farm Payroll Fx Trading Strategy

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

  1. of being in trades an hour before and after NFP.
  2. Do not trade USD/CHF on Non Farm Payroll days
  3. 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.
  4. Be careful

USDX Daily

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!

The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

THE PLATINUM WAY

At Platinum Trading Academy, United Kingdom, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your 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 trading, get in touch with us and we will demonstrate live exactly how we approach the 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.

Get latest Forex and Cryptocurrency market reports and views, trading videos and forecasts of trading opportunities delivered straight to your Inbox.

Earnings Disclaimer:

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.