DEFINITION
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.
UPDATE
The US NFP Employment Change came out slighly better than expected at 155K vs 145K~150K forecast. We entered a trade on the EURUSD on the lower end of the range at 1.3016 and taking advantage on the Buy-on-Rumor Sell-on-News type of market condition. Shortly after, we closed half of the position at 1.3046, yielding us +30 pips profit and left the 2nd half of the trade to run until after the US Equity market open and the US ISM Non-Manufacturing PMI news. The US ISM Non-Manufaturing data was released as expected and subsequently decided to close the trade at 1.3053; giving us a total of positive +34 pips average.
About Kelvin Ching
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