US Non-Farm Payroll

Fx News Spike Signals by Crazy Cat, 2020/03/06

US Non-Farm payroll is one of the best reports to trade although sometimes even this report may not perform as great as expected. It's best to analyze charts from our economic calendar page where you can find 1-second candles on many currency pairs and other instruments such as Gold or Dow Mini or Nasdaq Mini or even oil.

Release Time: 08:30 New York time (EST)
Primary currency pair: USD/JPY
Forecast: +175K
Prior: +225K
LT1 (Lower Trigger 1): -60 [SELL]
UT1 (Upper Trigger 1): +60 [BUY]
Safety: 399

IMPORTANT NOTE: Once a while this report is a complete failure so never trade huge money on this report. Sometimes it works quite well but once a blue moon results are very disappointing. If you are SNW Enterprise customer, consider trading Canadian employment report as well.

This time I suggest using a conflict resolution mode to at least prevent a possible conflict with the unemployment rate. Here is how to do it (for SNW Enterprise and SNW Elite):

1. For US Change in Non-Farm Payrolls, select “1” and “P” (this means it's a primary report for Group 1), and enter your triggers where positive triggers would cause Buy action and negative triggers Sell action if trading USD/JPY for example.

2. For US Unemployment Rate, select “1” and “S” (this means it's a secondary report for Group 1), and enter -0.2 trigger for Buy 1 action and +0.2 trigger for Sell 1 action (these are reversed triggers because higher unemployment is bad, and lower unemployment is good). Do not enter anything for Buy2/Sell2 or Buy3/Sell3. This configuration would allow small +/- 0.1 conflict but would prevent +/- 0.2 or higher conflicts. If you do not wish to allow any conflicts, then set up +/- 0.1 triggers instead of +/- 0.2 triggers.

3. Then click on the Report Setup button that belongs to the MRRM Group 1 section. In MRRM Group 1 Configuration window make these selections:

a. Select “[x]Wait for all Primary and Secondary Reports before any trade action.

b. For Maximum Multi-Report wait, select 100 from the drop-down menu. Or perhaps even 50.

c. Select “[x] Primary Reports Confirm Method = When all are B1s or S1s or better” (there is only one primary report selected anyway).

d. Select “[x] Secondary Reports Confirm Method = When all are No Trade or better”.

4. Close that window and then set up mouse clicks.

5. (Optional) If you also wish to trade Canadian Employment at the same time, set up that report as "2" "P" (which means a primary report for Group 2), and then set up corresponding mouse clicks for Group 2. That means that this Canadian report would be traded completely independently from the U.S. reports (which is what you want since it's even different currency pair), with its own mouse clicks. Note that Canadian reports are not released exactly at the same time with U.S. reports (they are usually released slightly earlier) but that's OK because it is set up on a separate group with its own mouse clicks that are appropriate for that report.

If US Non-Farm Payroll Employment Change comes out at 115K or less ( -60 trigger), USD/JPY should go down by about 25 pips or more. If it comes out at 235K or better ( +60 trigger), USD/JPY should go up by about 25 pips or better.

Based on 82 estimates, the median estimate is 175K and the average estimate is 175K. The highest estimate is 250K (one estimate), and then 230K (one estimate), 225K (one vote), 220K (one vote), 215K (two estimates), 210K (one vote), 200K (six votes), 195K (three votes), 190K (5 estimates), 185K (four estimates), 180K (7 votes) and 175K (11 votes).

The lowest estimate is 130K (one vote), then 140K (three votes), 150K (nine estimate), 155K (four estimates), 160K (six votes), 165K (seven votes), and finally 170K (9 estimates). Values in the breakdown have been rounded to the nearest 5K so it's easier to read and analyze.

One standard deviation is +/- 22K.

As always, there is a possibility of a severe conflict with the Revision number or Unemployment rate. Please see above how to use conflict resolution mode.

Some people also look at US Average Hourly Earnings (M/M) and if there is a conflict there, we might see muted price action. This can also be added to the conflict resolution mode as another "1" "S" report.

Please remember that a deviation of 0.2 on the unemployment rate can move USD/JPY on its own. A positive deviation of the unemployment rate is bad for USD because it means higher unemployment. However, a positive deviation from the employment change or revision is good for USD because it means more people got new jobs.

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