The release of the Non Farm Payrolls (NFP) and Unemployment Rate by the Bureau of Labor Statistics today was one of the most anticipated data releases.
The payroll releases often create increased volatility in the Forex market immediately after the data release. Spikes can go in both directions. Most times it is better to wait for 30 minutes after the release.
The chart below displays the EUR/USD price action after today's NFP release.
- The price went first up 25 pip(1.4255 to 1.4280)
- Then jumped erratic within a 20 pip range (1.4260-1.4280)
- And then fell about 70 pips to 1.4200
The lesson is to wait at least for 30 min after the data release before entering a short-term trade. After that follow the trend.
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