Non farm payrolls

kudorsLV

Maybe some will think this is a stupid question, but to be sure i will ask this, because i dont want to lose any money on this.

So as you all now, every month's first friday there is high impact news- Non-Farm Payrolls. But where is it this month? Is this "ISM Non-Manufacturing PMI" is the same or not?

Okane

kudorsLV said:

Maybe some will think this is a stupid question, but to be sure i will ask this, because i dont want to lose any money on this.

So as you all now, every month's first friday there is high impact news- Non-Farm Payrolls. But where is it this month? Is this "ISM Non-Manufacturing PMI" is the same or not?

Next Friday.

The_Geek_MH

yeah, it's a weird week, they could have done it this Friday but they aren't. WE get challenger this week though, adp next week.

DewarConc

Does anybody have a strategy on how to trade the Non-Farm payroll? I find that when I trade according to the news the trade still goes against me. It is very frustrating.

Okane

DewarConc said:

Does anybody have a strategy on how to trade the Non-Farm payroll? I find that when I trade according to the news the trade still goes against me. It is very frustrating.

I use technical analysis for news as well. I don't speculate on the results, I just watch the charts and wait for the announcement, then
take it from there depending on what I see on the charts.

The_Geek_MH

first, you have to track the NFP to know what the trend is and what to expect with the numbers, then wait for it to come out and trade the market signal as Okane suggested. Yo, Okane, what's up... '-)

Okane

Yo what's up Mr Geek. Well put.

You can check the charts and the previous outcomes and see how the charts reacted or reacts usually to learn and do lots of demo (see what happened when there was positive vs negative news) did the price go up on all cases? By how much approximately?
Sometimes, multiple news come at once and cancel the effect of each other or boost it. So, sometimes you will see what is "supposed" to push the price down could do the opposite or not do much at all.

DewarConc

Thanks for your guidance. What has happened to me in the past is that after the announcement I trade in the direction I think the dollar will move. If the announcement is good I CALL the dollar; if it is bad I PUT the dollar. I noticed that many times even if the announcement is good the dollar still goes down instead of up. This also happened with the USA interest rate decision yesterday. Although the Feds raised interest rate the dollar still went down. This is crazy.

Blue Sky Binary

Hi Dewar,

In certain instances this is because of short covering; this can cause an assymetric reaction in the market but if you understand this, then it makes sense. On the other hand, investors most of the time buy the rumour and sell the news; the 0.25% rate hike yesterday was already factored in, hence the reaction of the USD. It would have only risen if you had a beat on the quarter point hike.

Team BSB

Okane

DewarConc said:

Thanks for your guidance. What has happened to me in the past is that after the announcement I trade in the direction I think the dollar will move. If the announcement is good I CALL the dollar; if it is bad I PUT the dollar. I noticed that many times even if the announcement is good the dollar still goes down instead of up. This also happened with the USA interest rate decision yesterday. Although the Feds raised interest rate the dollar still went down. This is crazy.

I wouldn't just go based on that. As I mentioned, it's important to check price action too, see if price breaks your S/R or trendlines. Hard to explain like this but I don't just go based on numbers cause it doesn't work every time.

DewarConc

Thanks.

mmmintu

Hi
It is an influential statistic and economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state of the labor market.

The financial assets most affected by the NFP data include the US dollar, equities[1][2] and gold.[3] The markets react very quickly and most of the time in a very volatile fashion around the time the NFP data is released. The short-term market moves indicate that there is a very strong correlation between the NFP data and the strength of the US dollar. Historical price movement data shows a small negative correlation between the NFP data and the US dollar Index.[4]

The Bureau of Labor Statistics releases preliminary data on the third Friday after the conclusion of the reference week, i.e., the week which includes the 12th of the month, at 8:30 a.m. Eastern Time;[5] typically this date occurs on the first Friday of the month. Nonfarm payroll is included in the monthly Employment Situation or informally the jobs report and affects the US dollar, the Foreign exchange market, the bond market, and the stock market.

The figure released is the change in nonfarm payrolls (NFP), compared to the previous month, and is usually between +10,000 and +250,000 during non-recessional times. The NFP number is meant to represent the number of jobs added or lost in the economy over the last month, not including jobs relating to the farming industry.