Should you trade the NFP tomorrow?
|A relatively quiet market today with another geopolitical drama into the Brexit negotiation. Will EU and UK reach any agreement tomorrow? Who knows, but one thing for sure, it’s a great trading opportunity for day traders, or not.
Let’s zoom out to look at the hourly chart. Most GBP pairs had good price actions today, but how will a trader profit in this kind of environment? The sentimental news from Brexit negation has been driving GBP pairs in the past days, weeks and months. But can you profit in this type of trades?
It’s very easy to get caught up in the financial market and hot headlines, bitcoin mania is still ongoing, and most people just can’t resist the temptation to jump in. However, like all successful traders have shared one thing in common, that is to trade what you know and know what you trade. Approach the market with a consistent style of trading is your way to ensure that not only you will survive in this market but also profit in the long run.
Tomorrow’s NFP is an excellent example for you to practice your approach. Have you always traded NFP? If so, you know the impact of the data and what numbers to look out. Stay beside your trading desk and ready to take action.
I’m expecting another buy rumors and sell fact effect with Average Hourly Earnings m/m below 0.3%. The sell-off of USD will be lasting until the FOMC meeting next Wednesday. On the contrary, we might have a huge rally in USD if the number beats expectation and USD will be bought continuously until next Wednesday as well.
What about the Employment Change and Unemployment Rate? To simply put it, they are not important and will not be my trigger. Watch Today’s Video to learn more about it.
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