Does the employment situation report from BLS noticeably change the FX major pairs?

nando5_official

Junior member
13 0
Does the data being exposed from the reports have a drastic change to currency pairs such as EUR/USD and USD/JPY on the charts? if so then how long does it take into effect and what data precisely should I look out for? Unemployment rates? average weekly earnings? :idea:
 

FXX

Experienced member
1,170 200
Does the data being exposed from the reports have a drastic change to currency pairs such as EUR/USD and USD/JPY on the charts? if so then how long does it take into effect and what data precisely should I look out for? Unemployment rates? average weekly earnings? :idea:
It depends. If the central bank is concerned about that data point then yes. If on the same week as the central bank policy release then no. If the number is a major deviation from expected then yes so long as it isn't driven by an isolated explainable event (like the Royal wedding). There can be many different reasons which you can only find out by looking at the context. This is the relationship between central bank policy and market sentiment. Anything can drive sentiment it is not exclusively driven by data releases. Since you are referring to usd you are wondering if tomorrow's nfp will drive price. Doubtful unless there is a major surprise since we had fed policy this week. What you might get is other sentiment driving it like trade news related to tariffs or position squaring otherwise shouldnt be too eventful.

Sent from my SM-G950F using Tapatalk
 
Last edited:

rawrschach

Experienced member
1,223 277
depends on your pov. If you're day trading the effect is drastic. Swinging the daily chart, not so much. It doesn't really drive price in the long term.
 

nando5_official

Junior member
13 0
It depends. If the central bank is concerned about that data point then yes. If on the same week as the central bank policy release then no. If the number is a major deviation from expected then yes so long as it isn't driven by an isolated explainable event (like the Royal wedding). There can be many different reasons which you can only find out by looking at the context. This is the relationship between central bank policy and market sentiment. Anything can drive sentiment it is not exclusively driven by data releases. Since you are referring to usd you are wondering if tomorrow's nfp will drive price. Doubtful unless there is a major surprise since we had fed policy this week. What you might get is other sentiment driving it like trade news related to tariffs or position squaring otherwise shouldnt be too eventful.

Sent from my SM-G950F using Tapatalk
OK that was very useful info thanks. I'm still a novice at trading so i wanted to ask if there is an economic divergence such as payrolls or lower percentage in NF employment does that mean the market would go short meaning you would sell or does it have a contrasting effect meaning it will go long (bullish)? :idea:
 

FXX

Experienced member
1,170 200
OK that was very useful info thanks. I'm still a novice at trading so i wanted to ask if there is an economic divergence such as payrolls or lower percentage in NF employment does that mean the market would go short meaning you would sell or does it have a contrasting effect meaning it will go long (bullish)? :idea:
it all hinges off the context driven by sentiment. It is never black and white which is why retail traders in general dismiss fundamentals because they have tried trading it off the back of a better or worse than expected number to only get burned. In regard to the Fed the focus isn't currently on employment it is on wage growth so NFP on it's own isn't really playing a major role driving sentiment. I know this because the Fed communicate exactly what they are watching and their forecasts and concerns. You are on absolutely the right path with starting your trading journey by looking at this stuff but you need to go deeper than just the economic indicators. You need to start with the central banks, their policy, where they are in regards to their policy forecasts. Then you can start looking at the major data points they are watching and trade them accordingly. Being mindful of course that the closer the data point is to the most recent central bank official communication, the less important it will be.
 

nando5_official

Junior member
13 0
it all hinges off the context driven by sentiment. It is never black and white which is why retail traders in general dismiss fundamentals because they have tried trading it off the back of a better or worse than expected number to only get burned. In regard to the Fed the focus isn't currently on employment it is on wage growth so NFP on it's own isn't really playing a major role driving sentiment. I know this because the Fed communicate exactly what they are watching and their forecasts and concerns. You are on absolutely the right path with starting your trading journey by looking at this stuff but you need to go deeper than just the economic indicators. You need to start with the central banks, their policy, where they are in regards to their policy forecasts. Then you can start looking at the major data points they are watching and trade them accordingly. Being mindful of course that the closer the data point is to the most recent central bank official communication, the less important it will be.
Awesome! Could you provide me with valuable resources where I could collate the type of data needed to look in depth on the economic conditions then? Any websites or anything?.... could you link below. o_O
 

FXX

Experienced member
1,170 200
Awesome! Could you provide me with valuable resources where I could collate the type of data needed to look in depth on the economic conditions then? Any websites or anything?.... could you link below. o_O
Forexlive (real-time analyst)
Tradingeconomics (fast data releases, better than fx factory and historic economic data)
Ransquawk (you can get a delayed version or signup with fxpro broker and get live squawk free)
All the central bank sites for previous releases
If you have money you can subscribe to Xenith from Metastock which is a premium news platform with instant data releases and powerful features



Sent from my SM-G950F using Tapatalk
 

nando5_official

Junior member
13 0
Forexlive (real-time analyst)
Tradingeconomics (fast data releases, better than fx factory and historic economic data)
Ransquawk (you can get a delayed version or signup with fxpro broker and get live squawk free)
All the central bank sites for previous releases
If you have money you can subscribe to Xenith from Metastock which is a premium news platform with instant data releases and powerful features



Sent from my SM-G950F using Tapatalk
Couldn't thank you enough!

With PiP love (y)
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock