The Nonfarm Payrolls are possibly the economic news release that often sees the highest volatility outside of a Central Bank Interest Rate Decision.
This volatility is because of the strong correlation between Monetary Policy, Interest Rates and the US Jobs Market.
The US Bureau of Labor releases the report with the number of new jobs created during the previous month, excluding agricultural businesses.
Last months Nonfarm Payrolls
Analysts expected the creation of around 647,000 new jobs. The consensus was short, and the actual number was 916,000. This figure resulted in a giant pin bar on the EURUSD 15 minute chart. Open and Close were in the 1.1767/68 region. The high was 1.1785; the low was 1.1756.
This volatility reiterates the importance of not over-leveraging and trading safe.
Global job creation took a hit in 2020 due to the pandemic, but as the economy starts to open back up, figures look to be recovering back to normal levels.
This time around, analysts are forecasting 980,000 new jobs. With this forecast being higher than lasts month actual figure, will they be correct?
Nonfarm Payrolls always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.
Are you a news trader?
Or maybe a breakout trader?
If you plan to trade The Nonfarm Payrolls, Tweet us how you plan to tackle the volatility storm should it surface!
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