#Learn About Non-Farm Payroll (NFP) and Its Impact on Forex Trading

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Explore the impact of Non-Farm Payroll (NFP) on the forex market with Yamarkets. Our NFP page provides valuable insights, analysis, and educational resources for traders. Start trading with confidence today.

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Leveraging the Forex Economic Calendar for Optimal Trading

In the highly dynamic world of forex trading, access to precise and timely information is a cornerstone of successful trading. The Forex Economic Calendar is an invaluable tool that offers traders a comprehensive schedule of key economic events and data releases that can influence currency markets. This article explores the significance of the Forex Signals, how to use it effectively, and strategies for incorporating it into your trading practices.

The Significance of the Forex Economic Calendar

The Forex Economic Calendar lists forthcoming economic events and data releases globally, including central bank meetings, interest rate decisions, employment statistics, inflation reports, and GDP data. These events can lead to significant fluctuations in currency values. Being informed about these events allows traders to anticipate market movements and make informed trading decisions.

Key Features of the Forex Economic Calendar

Date and Time: Specifies the exact date and time of each event, enabling traders to plan their activities around these critical moments.

Currency Impact: Identifies which currencies are likely to be affected by each event. For instance, a report from the European Central Bank will primarily impact the Euro (EUR).

Event Description: Provides a brief overview of the event, such as "U.S. Non-Farm Payrolls" or "Bank of Japan Interest Rate Decision."

Impact Level: Categorizes events by their potential impact on the market—low, medium, or high. High-impact events are more likely to cause significant market movements.

Previous, Forecast, and Actual Data: Displays previous results, forecasted figures by analysts, and the actual data once released, helping traders gauge market expectations and reactions.

How to Use the Forex Economic Calendar Effectively

To maximize the benefits of the Forex Economic Calendar, traders should:

Focus on High-Impact Events: Prioritize monitoring events marked as high impact, as these are more likely to lead to significant market movements.

Understand the Data: Learn what each event signifies and how it historically affects the market. For example, a higher-than-expected GDP growth rate might signal a stronger economy, potentially boosting the currency.

Plan Trades Around Key Events: Avoid entering new trades just before major economic releases to minimize exposure to unexpected volatility. Use the calendar to time your trades strategically.

Integrate with Trading Strategies: Combine the economic calendar with other trading tools and strategies. For instance, use fundamental analysis based on economic events alongside technical analysis for a more comprehensive approach.

Weekly Trading Plan Example

Here’s how a trader might use the Forex Economic Calendar during a typical week:

Monday: Review the upcoming week’s calendar and highlight high-impact events.

Tuesday: Watch for the release of the U.S. Consumer Confidence Index and prepare for potential USD movements.

Wednesday: Focus on the ADP Employment Change report and its implications for USD pairs.

Thursday: Monitor the European Central Bank (ECB) meeting and interest rate decision, anticipating movements in the EUR.

Friday: Keep an eye on the U.S. Non-Farm Payrolls (NFP) and Unemployment Rate, which often lead to significant market shifts.

Tips for Maximizing the Economic Calendar

Stay Updated: Regularly check the calendar for updates and revisions to scheduled events.

Global Perspective: Understand that economic events in one region can have ripple effects on currencies globally.

Set Alerts: Utilize alert features provided by many trading platforms to receive notifications about important events.

Combine Analyses: Integrate insights from the economic calendar with other forms of analysis, such as technical and sentiment analysis, to form a comprehensive trading strategy.

Conclusion

The Forex Economic Calendar is an essential tool for forex traders, offering critical insights into upcoming economic events that can drive market movements. By understanding and effectively utilizing this calendar, traders can better anticipate market changes, manage risks, and make more informed trading decisions. Incorporate the Forex Economic Calendar into your daily trading routine to enhance your ability to navigate the complexities of the forex market successfully.

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EUR/USD to Stage Larger Pullback on Strong U.S. NFP Report

New Post has been published on http://forex-info.info/main/eurusd-to-stage-larger-pullback-on-strong-u-s-nfp-report.html

EUR/USD to Stage Larger Pullback on Strong U.S. NFP Report

Why Is This Event Important:

With the U.S. economy approaching full-employment, signs of higher wage growth may encourage Chair Janet Yellen and Co. to deliver three rate-hikes in 2017 as the central bank remains confident in reaching the 2% inflation-target over the policy horizon. In turn, the dollar may exhibit a more bullish behavior ahead of the next rate decision on September 20 as the ‘the Committee expects to begin implementing its balance sheet normalization program relatively soon.’

However, a lackluster NFP report may push the FOMC to buy more time as ‘many participants, however, saw some likelihood that inflation might remain below 2 percent for longer than they currently expected, and several indicated that the risks to the inflation outlook could be tilted to the downside.’ As a result, the broader shift in EUR/USD behavior may continue to unfold throughout the remainder of the year especially as the European Central Bank (ECB) appears to be on course to taper its asset-purchase program ahead of the December deadline.

Impact that the U.S. NFP report has had on EUR/USD during the last print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

JUL

2017

08/04/2017 12:30:00 GMT

180K

209K

-29

-94

July 2017 U.S. Non-Farm Payrolls (NFP)

EUR/USD 5-Minute Chart

The U.S. economy added 209K jobs in July, with the jobless rate narrowing to an annualized 4.3% from 4.4% even as the Labor Force Participation Rate unexpectedly climbed to 62.9% from 62.8% during the same period. At the same time, Average Hourly Earnings held steady at 2.5% per annum amid forecasts for a 2.4% print, and the ongoing improvement in the labor market may keep the Federal Reserve on course to further normalize monetary policy over the coming months as region approaches full-employment. The dollar gained ground following the better-than-expected NFP report, with EUR/USD slipping below the 1.1800 handle to end the day at 1.1773.

How To Trade This Event Risk(Video)

Bullish USD Trade: U.S. Adds 180K Jobs or More, Wage Growth Picks in August

Need a red, five-minute candle subsequent to the fresh figures to consider a short EUR/USD position.

If the market reaction favors a bullish dollar trade, sell EUR/USD with two separate lots.

Set stop at the near-by swing high/reasonable distance from entry; look for at least 1:1 risk-to-reward.

Move stop to breakeven on remaining position once initial target is met, set reasonable limit.

Bearish USD Trade: NFP Report Falls Short of Market Expectations

Need a green, five-minute EUR/USD candle to consider a short dollar position.

Implement the same approach as the bullish dollar trade, just in the opposite direction.

Potential Price Targets For The Release

EUR/USD Daily Chart

Check out our EUR/USD quarterly projections in our FREE DailyFX Trading Forecasts

EUR/USD stands at risk for a larger pullback as it carves a series of lower highs & lows after filling in the gap from January-2015 (1.2000 down to 1.1955), while the Relative Strength Index (RSI) appears to be deviating with prices as it fails to mark fresh 2017-highs.

The 1.1770 (100% expansion) region largely in focus as it lines up with trendline support, with the next downside hurdle coming in around 1.1670 (50% retracement), which coincides with the August-low (1.1662).

Interim Resistance: 1.2320 (23.6% retracement) to 1.2370 (61.8% expansion)

Interim Support: 1.1390 (61.8% retracement) to 1.1400 (61.8% expansion)

EUR/USD Retail Sentiment

See how shifts in EUR/USD retail positioning are impacting trend- Click here to learn more about sentiment!

Retail trader data shows 37.6% of traders are net-long EUR/USD with the ratio of traders short to long at 1.66 to 1. In fact, traders have remained net-short since April 18 when EUR/USD traded near 1.08143; price has moved 9.9% higher since then. The number of traders net-long is 20.3% higher than yesterday and 19.2% higher from last week, while the number of traders net-short is 18.4% lower than yesterday and 21.2% lower from last week.

— Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David’s e-mail distribution list, please follow this link

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES SOURCE

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US Dollar Price Forecast: USD Pulls Back as US Data Releases Begin

US Dollar Price Forecast:

The US Dollar is pulling back from what’s become a strong outing in the month of September.

Before the September bounce, USD was in a bearish state since the quick spike in March was faded out.

The economic calendar for the remainder of this week is loaded with high-impact US items on the docket for each day of the week, capped by Non-Farm Payrolls on Friday.

The analysis in this article heavily utilizes price action and chart patterns. To learn more about price action, check out our DailyFX Education section, where it’s taught amongst a host of other candlestick patterns and formations.

There’s now less than 48 hours until the Q4 open and the US Dollar is giving back some recent gains as Q3 winds down. The month of September so far has been quite the change of pace, as a persistent sell-off in USD finally ran into some element of support earlier in the month, and buyers have been in action ever since. Much of this bullish move developed last week, following a quick support test after trading opened for the week which was followed by an outsized showing from USD-bulls.

US Dollar Monthly Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

USD Strength Faces High-Impact US Data

That theme faces its first real test this week as a flurry of data points out of the US will prod that next directional move in the currency. Today at 10AM ET brings consumer confidence numbers, and tomorrow brings final Q2 GDP readings. But it’s the day after when the plot thickens as we’ll get both PMI numbers to go along with PCE; and then Friday brings the big one with Non-Farm Payrolls. Collectively – this will give markets a look at both inflation pressure and employment, along with forward-looking expectations and this can help to round out the picture of what market participants are looking at as we head into the final quarter of what’s been a fairly unique year of 2020.

DailyFX Economic Calendar: High-Impact US Releases Remaining for This Week

US Dollar’s Bearish Backdrop In Question Ahead of Q4 Open

Has the US Dollar reversed its bearish course? We still can’t say one way or the other yet, at least not definitively.

The Greenback was engaged in a consistent sell-off ever since the quick spike in March, and that sell-off soon brought fresh two-year-lows into the mix just a few months after the currency set a fresh three-year-high. But, there were a plethora of reasons for that sell-off, least of which was FOMC policy and an aggressive move down to the lower bound of rates. This act of driving interest rates lower helped to also push capital into riskier assets, such as tech stocks, so there was a logical relationship for much of the summer in which both USD weakness and equity strength ruled the day.

Both of those themes have come into question in September as stocks started to pull back while the USD began its bounce from support. Permeating the backdrop this month along with those moves is a bit of skepticism around that next round of stimulus, coupled with a massive dose of uncertainty as the US wrestles with both a pensive Presidential Election and an ongoing pandemic of worsening proportions.

At this point, the September bounce in USD has retraced approximately 23.6% of the move since March and around 38.2% of the move that’s posted from the June 30 high. That 38.2% marker of the June-September major move appears to be helping with short-term support, taken from around the 94.00 handle.

US Dollar Daily Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

Taking a more granular look at the matter, and incorporating a Fibonacci retracement around the September bullish move, will help to provide some additional context to near-term USD price action. The 38.2% retracement of the June-September move is confluent with the 23.6% marker of the September bump; and a bit lower, around 93.60, is another area of short-term support potential.

Of key interest, especially with a heavy outlay on the economic calendar over the next few days – is the confluent support zone that runs from around 93.18-93.36. In this area on the chart are retracements from all three of the above major moves; offering a bit of confluent should the USD pullback with aggression ahead of the Friday NFP report.

US Dollar Four-Hour Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

— Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

The post US Dollar Price Forecast: USD Pulls Back as US Data Releases Begin appeared first on Forex Trader Post.

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EUR/USD to Stage Larger Pullback on Strong U.S. NFP Report

New Post has been published on http://forex-info.info/main/eurusd-to-stage-larger-pullback-on-strong-u-s-nfp-report-2.html

EUR/USD to Stage Larger Pullback on Strong U.S. NFP Report

Why Is This Event Important:

With the U.S. economy approaching full-employment, signs of higher wage growth may encourage Chair Janet Yellen and Co. to deliver three rate-hikes in 2017 as the central bank remains confident in reaching the 2% inflation-target over the policy horizon. In turn, the dollar may exhibit a more bullish behavior ahead of the next rate decision on September 20 as the ‘the Committee expects to begin implementing its balance sheet normalization program relatively soon.’

However, a lackluster NFP report may push the FOMC to buy more time as ‘many participants, however, saw some likelihood that inflation might remain below 2 percent for longer than they currently expected, and several indicated that the risks to the inflation outlook could be tilted to the downside.’ As a result, the broader shift in EUR/USD behavior may continue to unfold throughout the remainder of the year especially as the European Central Bank (ECB) appears to be on course to taper its asset-purchase program ahead of the December deadline.

Impact that the U.S. NFP report has had on EUR/USD during the last print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

JUL

2017

08/04/2017 12:30:00 GMT

180K

209K

-29

-94

July 2017 U.S. Non-Farm Payrolls (NFP)

EUR/USD 5-Minute Chart

The U.S. economy added 209K jobs in July, with the jobless rate narrowing to an annualized 4.3% from 4.4% even as the Labor Force Participation Rate unexpectedly climbed to 62.9% from 62.8% during the same period. At the same time, Average Hourly Earnings held steady at 2.5% per annum amid forecasts for a 2.4% print, and the ongoing improvement in the labor market may keep the Federal Reserve on course to further normalize monetary policy over the coming months as region approaches full-employment. The dollar gained ground following the better-than-expected NFP report, with EUR/USD slipping below the 1.1800 handle to end the day at 1.1773.

How To Trade This Event Risk(Video)

Bullish USD Trade: U.S. Adds 180K Jobs or More, Wage Growth Picks in August

Need a red, five-minute candle subsequent to the fresh figures to consider a short EUR/USD position.

If the market reaction favors a bullish dollar trade, sell EUR/USD with two separate lots.

Set stop at the near-by swing high/reasonable distance from entry; look for at least 1:1 risk-to-reward.

Move stop to breakeven on remaining position once initial target is met, set reasonable limit.

Bearish USD Trade: NFP Report Falls Short of Market Expectations

Need a green, five-minute EUR/USD candle to consider a short dollar position.

Implement the same approach as the bullish dollar trade, just in the opposite direction.

Potential Price Targets For The Release

EUR/USD Daily Chart

Check out our EUR/USD quarterly projections in our FREE DailyFX Trading Forecasts

EUR/USD stands at risk for a larger pullback as it carves a series of lower highs & lows after filling in the gap from January-2015 (1.2000 down to 1.1955), while the Relative Strength Index (RSI) appears to be deviating with prices as it fails to mark fresh 2017-highs.

The 1.1770 (100% expansion) region largely in focus as it lines up with trendline support, with the next downside hurdle coming in around 1.1670 (50% retracement), which coincides with the August-low (1.1662).

Interim Resistance: 1.2320 (23.6% retracement) to 1.2370 (61.8% expansion)

Interim Support: 1.1390 (61.8% retracement) to 1.1400 (61.8% expansion)

EUR/USD Retail Sentiment

See how shifts in EUR/USD retail positioning are impacting trend- Click here to learn more about sentiment!

Retail trader data shows 37.6% of traders are net-long EUR/USD with the ratio of traders short to long at 1.66 to 1. In fact, traders have remained net-short since April 18 when EUR/USD traded near 1.08143; price has moved 9.9% higher since then. The number of traders net-long is 20.3% higher than yesterday and 19.2% higher from last week, while the number of traders net-short is 18.4% lower than yesterday and 21.2% lower from last week.

— Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David’s e-mail distribution list, please follow this link

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES SOURCE