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 69K, much lower than the expected 151K forecast despite applying the birth and death adjustments; and the unemployment rate was slightly higher at 8.2%. The market was initially confused and we could even see some USD strenghtening in the AUDUSD and EURUSD pairs. After waiting for a decent retracement, Henry entered a buy on the EUR/USD pair at 1.2315 because of the much worst than expected US NFP Employment Change number. In a few minutes, we closed 50% position for 25+ pips of profit and moved the SL to break-even, and then the remaining 50% position reached our take profit level at 1.2365 for 50 pips of profit; yielding a total of about 38 pips of profit.