A trader I know recently said to me that not only can you trade the immediate volatility
in the market after Non Farm Payrolls and Unemployment Rates but also it often sets the mood for the market in the following month all the way up to the next data release, now this sounds like it has some logic to me so I have plotted all the NFP and UR
points for the last year on the Dollar Index
. There is potentially signs of turning points in the markets on these key dates.
What do you think?
NFP = Non Farm Payroll
NFP measures change in the number of employed people during the previous month, excluding the farming industry.
Usual Effect: Actual > Forecast = Good for currency
= US Unemployment Rate
measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
Usual Effect: Actual < Forecast = Good for currency