US NFP Risk Appetite Retracement Trade 08/07/09

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8:30am (NY Time) US NonFarm Payroll | Forecast -320K | Previous -467K
ACTION: USD/JPY BUY -250K SELL -400K

DEFINITION

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Measures the change in number of employed people during the previous month, excluding the farming industry. A rising trend has a positive effect on the nation’s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.

UPDATE: NFP came out at -247K, Revision was -443K, and Unemployment went down to 9.4%. This was a landslide risk appetite release as I quickly turn my attention to the GBP/JPY pair for LONG trades. I made over 40+ pips on record, but in the trade room we were able to make 100+ as we held the trade as GY break above 162.

About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

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