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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>

Editors’ Picks

EUR/USD holds steady near 1.0850 ahead of Eurozone PMIs

EUR/USD holds steady near 1.0850 ahead of Eurozone PMIs

EUR/USD oscillates near 1.0850 in the early European session on Wednesday, flirting with two-week lows. The pair turns cautious ahead of preliminary Eurozone PMI data while the US Dollar faces fresh selling amid the USD/JPY slide. US PMIs eyed as well. 

EUR/USD News

GBP/USD remains pressured below 1.2900, UK/ US PMIs eyed

GBP/USD remains pressured below 1.2900, UK/ US PMIs eyed

GBP/USD remains under pressure below 1.2900 early Wednesday. Broad risk-aversion offsets the USD/JPY decline-driven US Dollar weakness, rendering negative for the pair. The focus now shifts to the UK and US S&P Global PMI readings. 

GBP/USD News

USD/JPY extends losses below 155.00 after facing rejection at 156.00

USD/JPY extends losses below 155.00 after facing rejection at 156.00

USD/JPY is extending losses below 155.00 in the Asian session on Wednesday, following a brief test of 156.00. Expectations of a BoJ rate hike combined with broad risk-aversion help the Japanese Yen regain the upper hand while the US Dollar consolidates ahead of PMI data. 

USD/JPY News

Editors’ Picks

EUR/USD holds steady near 1.0850 ahead of Eurozone PMIs

EUR/USD holds steady near 1.0850 ahead of Eurozone PMIs

EUR/USD oscillates near 1.0850 in the early European session on Wednesday, flirting with two-week lows. The pair turns cautious ahead of preliminary Eurozone PMI data while the US Dollar faces fresh selling amid the USD/JPY slide. US PMIs eyed as well. 

EUR/USD News

GBP/USD remains pressured below 1.2900, UK/ US PMIs eyed

GBP/USD remains pressured below 1.2900, UK/ US PMIs eyed

GBP/USD remains under pressure below 1.2900 early Wednesday. Broad risk-aversion offsets the USD/JPY decline-driven US Dollar weakness, rendering negative for the pair. The focus now shifts to the UK and US S&P Global PMI readings. 

GBP/USD News

Gold stays hopeful above $2,400, as US PMI data loom

Gold stays hopeful above $2,400, as US PMI data loom

Gold price is looking to build on the previous rebound above $2,400 in Asian trading on Wednesday, despite a buoyant tone seen around the US Dollar and the US Treasury bond yields. Gold traders now look forward to the global preliminary business PMI data for fresh trading impetus.  

Gold News

PEPE price poised for a rally after retesting trendline support

PEPE price poised for a rally after retesting trendline support

PEPE price broke out of a descending channel pattern, surging by 12%, but is experiencing a corrective pullback, trading 2.3% lower at $0.0000121 as of Wednesday. 

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Bank of Canada: Rate cut expected; forward guidance eyed

Bank of Canada: Rate cut expected; forward guidance eyed

The Bank of Canada will take centre stage at 13:45 GMT. Alongside the rate decision, the central bank will deliver the rate statement and the Monetary Policy Report, released quarterly and providing investors with a glimpse of what the central bank expects in Q3.

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