HOW NFP INFLUENCES FOREX?
Market moving indicator
If the difference between a published state release and what analysts predicted turns out to be large, the market instantly responds with a rise or fall in the value of the US dollar.
Why NFP is important for trading?
A change in the value of NFP in 100-200 thousand jobs will cause the strong volatility in the currencies paired with the US dollar.
When NFP is released?
NFP is reported by the US Bureau of Labor Statistics every first Friday of month.
Active trading starts in first 30 minutes after NFP release, the increased volatility lasts about 3 hours.
START NOWMARKET REACTION EXAMPLE
As you can see at the USDJPY chart, US dollar’s rate keeps rising during the first 30 minutes after the report, because NFP outstrip analytical forecast. This situation allows traders to increase their profit in short terms.
USEFUL TIPS FOR TRADING DURING NFP
Get ready to trade during NFP beforehand – make sure you have enough money on your trading account and deposit it if needed.
Read the prognoses of analysts about upcoming NFP to keep track of their forecasts and predict the market movement.
The market at this moment is highly volatile so do not forget to place stop losses when placing your orders.
Next NFP release
04.01.2019
Days left:
24
MAKE THE BEST TRADING DECISIONS WITH NFP INDICATOR
