The monthly release of the NFP (Non-Farm Payrolls) figures is a highly anticipated moment for all traders. And this is with good cause, because the Non-Farm Payrolls has been historically known to shake up the market place quite a bit. Using a reliable NFP prediction strategy is something that many traders are after.

Just like most other news releases on the economic calendar, traders will use these figures to determine the strength or weakness of the underlying economy. NFP looks specifically at whether the US economy is expanding or contracting, based on the number of jobs added to the labour force. Having a NFP prediction strategy is a good way to be part of this action.

The NFP Prediction Strategy

This particular strategy has been tried and tested at Forex Watchers and Urban Forex. The videos above are two examples of live trading this strategy in a webinar.

The strategy itself is fairly straightforward. Find a correlating group and trade in the direction of the last daily candle. You can either choose to get in before the news is released or after. Both has it's pros and cons. Prior to the news spread are significantly lower, but there's the risk of the news spiking you out. After the news spreads will be higher, but you will have a bit more certainty on the direction - even when you miss a chunk of the move.

Final Words

Regardless of whether you intend to trade the news or maybe stand aside; remember NFP can be an exciting and will often bring unexpected volatility. If you do decide to trade, stick with your news trading plan and strategy, and always keep an eye on risk / reward levels. Because of the high excitement, emotions will come into play and it's not unwise to use a demo account for the first few times you trade NFP.

#UrbanForex - Be conscious of your trading!

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. Urbanforex will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.<7p>

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Editors’ Picks

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD was sold off on Thursday as investors get set for the outcome of Friday's key US event in Nonfarm Payrolls. US yields and the US dollar both rallied as investors dial back the sentiment surrounding a picot from the Federal Reserve.

EUR/USD News

GBP/USD declines towards 1.1100 on hawkish Fed bets, US NFP in focus

GBP/USD declines towards 1.1100 on hawkish Fed bets, US NFP in focus

The GBP/USD pair has delivered a downside break of the consolidation formed in a narrow range of 1.1145-1.1173 in the Tokyo session. The cable is hovering around Thursday’s low at 1.1112 and is expected to decline toward the round-level cushion of 111.00.

GBP/USD News

USD/JPY sees an establishment above 145.00 amid escalating Japan-North Korea tensions

USD/JPY sees an establishment above 145.00 amid escalating Japan-North Korea tensions

The USD/JPY pair is oscillating above the critical hurdle of 145.00 and is expected to sustain above the same by shifting its auction profile higher. The asset is expected to remain in the grip of bulls as the market sentiment is advocating a risk-aversion theme amid geopolitical tensions. 

USD/JPY News

Editors’ Picks

AUD/USD gathers momentum for a breakdown below 0.6400

AUD/USD gathers momentum for a breakdown below 0.6400

The AUD/USD pair is displaying back-and-forth moves in a narrow range of 0.6400-0.6422 in the Tokyo session. The asset has turned sideways after a perpendicular fall from 0.6540 as the market sentiment turned extremely sour on geopolitical tensions.

AUD/USD News

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD was sold off on Thursday as investors get set for the outcome of Friday's key US event in Nonfarm Payrolls. US yields and the US dollar both rallied as investors dial back the sentiment surrounding a picot from the Federal Reserve.

EUR/USD News

Gold: Will it chart a bull penant on weak US NFP? Premium

Gold: Will it chart a bull penant on weak US NFP?

Gold price is trading on the back foot but holding above the $1,700 mark on the final trading day of the week. Despite a three-day downtrend, the bright metal is on track for the largest weekly gain since March, up 3% so far this week.

Gold News

BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain

BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain

The world’s largest cryptocurrency exchange is observing an attack on its token chain and cryptocurrency. In response, Binance Coin’s price began falling on the charts making the investors highly concerned. Binance Coin has dropped by almost 4% since the opening hours.

Read more

Nonfarm Payrolls Preview: Five scenarios for trading King Dollar as markets plead for pain Premium

Nonfarm Payrolls Preview: Five scenarios for trading King Dollar as markets plead for pain

No pain, no gain – this gym idiom resonates with stock bulls. The Federal Reserve has said it is willing to accept – and even wants to see – economic pain to see inflation falling. Last month was painful in financial markets, but did American employment also feel the pinch?

Read more

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