NFP news

hi traders i got some question maybe you can help me

I don't understand if NFP is down it's mean that dollar weak, why gbp/usd is down too?

NFP, along with a lot of other news, gets pre-priced. Some of this is because other reports can precede the data and tip ppl off, others just guess or follow the new trend. Either way the price changes happen early, so when the actual report comes out the market must then correct some. If the price underestimated the report then you'll see the kind of results you'd expect, if it's overestimated then it'll go against that direction, if it's about equal... you won't see much change at all.

This is one of the reasons why news trading is tricky. In order to become an effective news trader you usually need to specialize on a particular report and get used to how it prices into the market, and develop an entry and exit strategy specifically for that report.

With that said, technical cycles still tend to complete. So if you're coming down off a high, good news won't always change that. Also keep an eye out for conflicting news... the US posted an improved trade deficit today which can certainly have some influence.

The overall employment report has mutliple components but the two people look at most are the unemployment rate and the amount of jobs created or lost during the previous month.

Anytime the data shows more jobs added than expected, it is generally good for the USD because job creation is great for the economy.

You also have to pay attention to the unemployment rate next.

Last Friday's trading for EurUSD was pretty typical. The amount of jobs in the economy was substantially less than expectation, so in the first minute of trading the USD went down hard. But as soon as people noticed that the unemployment rate wasn't too bad, you saw a dollar rally.

Please keep in mind that this is a very simple explanation of a complicated issue, because the markets doesn't always act the way that logically makes sense.

If you are trading live money I suggest you take a step back and dive into what different economic indicators have what impact on the USD before you lose a lot of money unnecessarily. Trust me, NFP is one of the most basic and fundamentally important economic reports to have a handle on so if this is new to you then you have a looooooong way to go before you should commit $$$ to trading.

Best of luck

thank you for the explanation
where can i get more information about fundamental and an effect to market

i want study more about news and what can i do to make decision

My strategy for trading the NFP release nowdays is basically this, i get up out of my chair,, go to the bathroom, mabey make a sandwich or go get a cup of coffee, come back at about 9am est and read the report from http://www.bls.gov/news.release/empsit.nr0.htm (The Beuro of labor and statistics) determine if it was actually good or bad for the usd and then go back to trading my technical system with the new fundi data in mind. Trading the spike is a dying trend as brokers are doing nasty things around all news releases now not just NFP. Just my 2 cents.

Oh,, the question,, a book called "The Secrets of Economic Indicators" by Bernard Baumohl is a great book that gets into details of the report components and what they may mean for the economy.