Friday, September 02, 2016

The NFP Were Worse than Expected

Since the US Non-farm Payrolls are usually announced on the first Friday of every month, it is also usual for the market to suffer from low volatility while traders and investors are anxiously waiting for the news, and as a results those of us who still trade have to trade most pairs in consolidation.

This Friday was no different. The data released was worse than what was expected and as a result it provoked strong movements in a set direction. There were no big spikes for the most part, which is something that also happens often during and right after the announcement of the NFP. Of course, most USD-related currency pairs moved against the USD.

I think that the biggest surprise for the traders, however, came from the EUR/USD pair, because after the EUR soared in a powerful rally following the news it then crashed in favour of the USD.

Such surprises, unfortunately, happen occasionally and they are a good reason why we should always be very careful when we trade the news, if we choose to trade the news.