Forex

[Christian]

Anybody here interested in forex and pay attention to the NFP report today?

Here's a link to the article.
http://biz.yahoo.com/ap/070202/economy.html?.v=6

Here's a chart from dailyfx.com
http://www.dailyfx.com/charts/Chart.html?symbol=EUR/USD

Open up the 15 min candlestick chart.

Notice the nearly 80 pip run on the 9am candlestick for today? The NFP is one of the biggest opportunities for profits in forex :smt006

Now the real question is why did that news effect the EUR/USD in that way? Bearish USD when the news first came out, then bullish after it was digested.

 

[Silverpike]

I can give you my overview. I trade Forex.

NFP is significant because it indicates, in a rough sort of way, how much buying power consumers of a particular nation have. Higher wages mean people can spend more for consumer goods. This is important, because the US imports nearly all of its goods from other countries. Therefore, the strength of a currency is tied to how much buying power its citizens have at any point in time.

As a sort of general comment, I am not big on fundamental trading. The price movement of a currency often does not follow the outcome of a major report in a way that is tradeable. Sometimes a certain sentiment is already priced into the market, and may often go in a direction opposite of the report conclusion. This makes for a very difficult trading session.