This is a call to action! You won't find a better data release than this to uncover lucrative opportunities in the market. Get ready, as currencies, stocks, and commodities are all set to be impacted by the upcoming release. Remember, as we always say, "the trend is your friend."
The Non-farm Payrolls report, renowned for its influence on financial markets, measures the monthly employment figures in the USA, excluding farm workers, non-profit organizations, and private household employees.
Here's a general guideline: a higher than expected figure can be seen as positive for the USD, while a lower than expected figure may be considered negative.
In recent news, the ADP report on US private payrolls surpassed expectations. According to their report, there was a seasonally adjusted increase of 278,000 in private sector employment, exceeding Dow Jones' estimated 180,000. However, it's important to note that job gains were not evenly distributed across industries, with most concentrated in a few sectors. ADP also mentioned that salary growth remains strong but is starting to slow down.
Now, let's focus on today's release. The NFP report is scheduled for release on Friday, June 2nd, at 1:30 PM GMT. In April, the NFP consensus was 179,000 jobs, but the actual number came in at 253,000. For May, the forecast stands at 190,000 jobs, with an expected Average Hourly Earnings (MoM) of 0.3% and a predicted Unemployment Rate of 3.5%.
Here are the specific figures analysts anticipate:
- Impact: High
- Consensus: 190K
- Previous: 253K
- Impact: Medium
- Consensus: 3.5%
- Previous: 3.4%
Average Hourly Earnings:
- Impact: Medium
- Consensus: 0.3%
- Previous: 0.5%
To navigate the volatility that typically accompanies NFP releases, traders often employ specific strategies. Let's explore three popular techniques:
1. Pre-NFP Breakout Strategy:
This strategy involves entering positions just before the NFP release based on technical analysis. Traders identify key support and resistance levels, placing pending orders to capitalize on breakouts in either direction. The goal is to profit from the sudden surge in volatility and price movement following the NFP announcement.
2. Fade Strategy:
The fade strategy takes a contrarian approach by initiating trades in the opposite direction of the initial market reaction to the NFP data. Traders patiently wait for the initial knee-jerk reaction to subside, seeking opportunities to enter positions against the prevailing sentiment. Successful implementation of this strategy requires careful analysis and a deep understanding of market dynamics to identify potential reversals.
3. Swing Trading Strategy:
Swing traders aim to capture longer-term trends that emerge after the initial NFP volatility settles. They analyse the market's response to the NFP data, looking for sustained movements in the direction of the overall trend. By utilizing technical indicators, price patterns, and support/resistance levels, swing traders identify optimal entry and exit points, aiming to profit from extended price moves.
Don't miss out on the potential opportunities presented by this significant data release. Prepare your trading strategies, keep a close eye on the NFP report, and make the most of the market movements ahead. Remember, knowledge is power, and careful analysis can lead to profitable outcomes.
Wishing you successful trades!