The Markets are trading in a silent mode as investors await the United States Employment Statistics( Non-Farm Employment Change and Unemployment Rate) . This is one of the biggest news release of the U.S economy and i strongly advise caution if you have an open position prior to the news release time. It is best to close all open orders or lock in some profits if you have open trades in profit. If your trades are running in loss, please ensure to minimize risk by tightening your stop loss before the release.
The Employment Change release is expected at 241K after a prior of 321K. The Unemployment Rate is expected to be at 5.7% after a prior of 5.8%. This provides a situation of an anticipation in a conflicting figure release. However we will focus more on the Employment Change and its revision.
If we get a significantly lower release on the Employment Change (171K or worse) and slightly higher Unemployment Rate (5.7% or more), i will be looking to buy EUR/USD and sell USD/JPY.
On the other hand, if we get a strong NFP release (311K or better) and the Unemployment Rate falls or remain at 5.7%, USD could strengthen, so i will sell EUR/USD, GBP/USD and buy USD/JPY.
If we get a conflicting release either by revision or opposing Employment Change and Unemployment Rate, then we’ll wait and see how the market reacts first. If there is an overwhelming sentiment driving the market, well get plenty of opportunities for an entry if we just wait for 5 minutes to 30 minutes after the release; you´ll get a much clearer view to get a clear signal.