Hey, so this is how I understand it: 1) The actual number is higher than the forecast and previous >> Dollar will likely rise 2) The actual number is lower than the forecast and previous >> Dollar will likely fall 3) The actual number is higher than forecast and lower than previous (or vice versa) >> No direction and lots of volatility as investors are confused this month, the USD NFP was: Actual: 210k Forecast:553k Previous: 546k. This means the USD weakens, and so you could've bought EURUSD. now what happened in July 2021: Actual:850K Forecast:725K Previous:583K This means the USD is strong, EURUSD should fall, so you go for a sell but EURUSD still rose. Why? The USD strengthens but EURUSD still goes up. I dont understand this in July. Anyone can explain?
Do not try to comprehend/understand. We are traders. So just focus on the chart and trade based on it. Let the professional writers figure it out. Anyway, during NFP, eurusd doesn't move much.
Forget logic; it's the NFP show! That means shake-outs, surprises, deep retraces, extreme moves; I've seen everything. All to make the majority lose. Even if the news isn't in favour of the euro, they might drive price up temporarily; taking several days before their true intentions become clear.
It moves to where ever the central banks want it to as NFP represents a price driver. They use it to send price to a place they want to collect orders. Dont try and predict it. Watch it, let it settle, and then watch out for the second bite of the cherry that often comes by way of a confirmation. You don't have to get the tops and bottoms.
NFP is a report, not just the headline number of jobs created. Types of jobs - service sector, manufacturing, gubmint. Hours worked, wages etc. Why ask why? Price goes up go long, price goes down go short.
Judging by my experience, it behaves differently every time. I mean surely that the most common rules are true as expectations and result, but this kind of trading is accompanied by lots of details which can influence the whole outcome and your trading results during nfp. It should be noted that nfp brings about the surge of volatility and everything may happen when the market is volatile. That is why it is of great importance to follow the principles of money and risk management if you don't want to lose everything that you've got on your trading account. More than that, you should deeply understand the trading on nfp before actually doing that. If you don't possess any knowledge yet, I recommend you to stay away from trading during that time just because of the volatility.