Trading A Non-Farm Payroll Friday

08 August 2009 @ 07:09 am EDT

The volatility of the 1st Friday of each month that Non-farm Payroll is released is not just down to the number of jobs created; this is a complex release that has four components that Traders must be aware of. The fact that it tends to follow the rate decisions from the ECB and BOE the previous day, and is always close to the well respected ISM economic surveys, does nothing to help tame the potential volatility. The fact that Asian markets are closed and European trade desks are into the last leg of their day, and it is the end of week alignment time, also adds to the scramble to find a stable dollar value.

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