it is time for another I LOVE TO TRADE DURING THE NFP AND I LOVE TO LOSE MY MONEY review. Yes. I am not trying to be funny but often this is the outcome if trade during NFPs without a clue of what is happening.
In the previous review, there was a move of more than 100 pips. If you were trying to catch a top, you probably would get a hole in your margin account!
The US Non-Farm Payroll Sep came out much better than expected.
The initial knee jerk reaction was massive. While the low to high range of this NFP was only a mere 70+pips, the volatility was high and could easily wipe out trades on both directions trying to catch a top or bottom. This is clearly seen on the chart above as the currency pair went up and down.
While the data was much better than expected, investors who looked deep into the figures understood the issue. It is still negative which means jobs are still being lost. Furthermore, the unemployment rate remains high and this will be a massive anchor dragging the US economy.
The US economy needs to see a complete turn about in the employment market and it is not likely to be anytime soon.
Trade safely.
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Related Forex Articles from the Koala Forex Training College.
- The US Non-Farm Payroll and the EUR/USD
- The US unemployment crisis
- Forex Mistakes : Picking tops and bottoms
