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 120K, much lower than the expected 205K forecast; and unemployment was slightly lower at 8.2%. Despite an initial reversal reaction on the EUR/USD pair, Henry entered a buy on the EUR/USD pair at 1.3076 because of the much lower than expected US NFP Employment Change number. In a few minutes, we closed 50% of the trade for 35+ pips of profit and moved the SL to break-even, and them we closed the remaining 1/2 position at around 12+ pips of profit; yielding a total of about 24 pips of profit.