US NFP is expected to be around 194K, and considering the Fed’s rate tightening actions and the possibility for up to 2 more rate hikes this year, an above trend NFP release is definitely expected, or the market will wonder whether or not the Fed will indeed hike 2 more times. Obviously another important figure to watch for is Revision of last month’s figure as it basically surprised the market at 98K. If we see a strong revision, even if today’s figure is just par, market will definitely support the USD…
8:30am (NY Time) US NF Employment Forecast 194K Previous 98K
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If we get a conflicting release, then well wait and see how the market reacts first. If there is an overwhelming sentiment driving the market, well get plenty of opportunities for an entry if we just wait for 5 minutes after the release; you´ll get a much clearer view.
TO BE UPDATED ON May 4, 2017
NFP Trading Strategy
Then the next step is to wait for the Unemployment Rate, which is expected to be at 4.6%. If the Unemployment Rate were to surprise higher, we’ll have to make a decision based on the market sentiment coming into this release… Of course, if Unemployment rate were to fall below 4.5%, then we should see a surge in USD as traders speculate Fed accelerate rate hiking process.
After all of the numbers have been released, wait for the market to push and wait patiently for a decent retracement before getting in. Look for recent support/resistance areas for entry as a high impact news with various components are extremely volatile, and those who are patient will always get a chance to enter with a much better entry.
US NFP (Nonfarm Payroll) Employment | May 5, 2017 | Currency News
April 30, 2017 by Leave a Comment