The US Non-Farm Employment Change 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.
The US NFP Employment change actual release number came out at 103K, much better than the expected 55K forecast. After comparing the movements and the strength of the different currency pairs, we waited for a retracement and entered on a buy trade on GBP/JPY pair at 119.60. In a couple of hours, we closed 50% of the trade for 20 pips of profit and moved the SL to break-even.