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US Dollar’s the big winner after the announcement cut apart from a few pairs which gained back its own momentum (like USDCAD)
Let’s see the few big movements.
GBPUSD
2.0516 to 2.0334 = 182 pips move
AUDUSD
0.8897 to 0.8711 = 186 pips move
USDJPY
110.76 to 110.46 = 130 pips move
So how many pips have you bagged? (I wasn’t around today to bag any, but I hope you did!)
From ForexNews,
The greenback edged up higher against the majors in early US trading, firming to 1.4017 versus the euro and 117.48 against the yen before easing in the afternoon ahead of the FOMC monetary policy minutes. The currency market remains quiet as traders returned to their desks following the holiday to a dearth of fresh economic news.
The dollar continues to benefit from last week’s stronger than expected jobs data, which tempered expectations for further aggressive rate cuts from the FOMC. Nonetheless, we still expect the Fed to cut rates by 25-basis points at the end of October.
The minutes of the FOMC meeting revealed a unanimous decision to cut rates by 50-basis points to 4.75% due to the extremely weak conditions of the housing market, tighter financial conditions and their potential impact on the economy. Members expressed concern that a weaker economy would further exacerbate tightening credit conditions and reinforce the slowdown. Although members remained concerned about the upside inflation risks, the Fed is more confident a decline in inflation would be sustained. Also, the Fed sees further slowing of employment likely but labor markets should remain fairly tight.
It’s the time of the month again with Non-Farm Payroll in about 2 hours or so.
Let’s show you what I’d usually do before the big numbers and probably derive something from there and then with both fundamental and technical analysis. I’d start my day by visiting Forex Factory’s economic chart and check the forecast and the previous number.
The Numbers
Nonfarm Employment Change: 100K appose to -4K last month. Good numbers eh! We’re suppose to see the dollar kicking a big fuss to the up side if the numbers tally then? Wait, let’s expand the directory icon to read what the rest has to say.
The Articles
So you’ve got like at least 6 articles. Digest them. One of the nice thing I appreciate from ForexFactory is their effort to group everything together in a category so it’s much easier for me to do my reading. Also, NFP is one of the most highly watched indicator, you’ll expect good number of articles written on it.
Done with the Reading
Aha! You’ve spent a good 1 hour or so to digest and have the rough direction how the market COULD go. (No, if you know how it will, you won’t need to read this anymore do ya?) So now you’re just waiting for the magic number announcement.
If NFP performs as expected with 100K or more, the dollar goes bullish, and if its a sub 100K results come up, uh uh! Dollar goes south.
Now to the Charts
Blow it up by clicking them, I always do have my fibos and trendlines drawn to see which side is the pair more prone to head.
GBPUSD
EURUSD
USDJPY
Points to Take Note When Trading Big News
I’m not too sure how ECN broker works because I’ve never worked with one, but chances of both type of brokers will have problems filling your positions when big news come, but never ever try to open positions before the news. If you could, wait for awhile before opening a position, maybe in the 5 – 10 minutes range, where you still could catch some pips of the news result.
Else if you are experience enough, you can always set your buy stop or sell stop levels with your stop loss before the news. Good luck tonight.
Hello Again Forex Fans!
Well, the news releases on Friday were very interesting. Nevertheless, I am awaiting the London session to see there reactions for today.
There are a few pairs Ive been watching. I dropped you all a hint about U/J on thursday night. If you were paying attention, we all made some nice pips. I had also taken a short on U/CAD which I hadnt spoke about earlier and made some nice pips on there news also.
I do see some trending pairs on the charts that look hopeful. U/J is now sitting at the 100 fib line. (123.50) If it breaks its high from Fiday, I will be back in with another long. While it is a strong trending pair at the moment, I will warn you that when the yen is trending, virtually anything can happen, so keep your stops tight. The other YEN pairs are also trending, but are also at very high highs. I feel safer with the U/J at the moment.
U/Cad and E/Cad have my utmost attention right now. The 100 Ma’s have recently crossed and its looking bearish to me. All the indicators say short, but as I said, I am awaiting London’s move.
My call tonight is U/J. Long at 123.58. TP 123.80. SL 123.40
Remember, never to trade more than 5% of your account on one trade.
Good Luck!
Humpty