Don’t Get Too Attached To The Market Reaction When Trading NFP Report!

When trading NFP Report, never get too attached to the market reaction. The price can shoot down on the first announcement and you happily open a short position. After sometime, you see the market reversing and start going up taking your stop loss. This is what happens most of the time. The initial reaction is always knee jerk and after 15-30 minutes the market reverses that reaction. Read this CNBC article that explains how the analysts predict the market reaction. Whatever happens on Friday most often tends to get reversed on Monday.

NFP is still by far one of the most market moving news release for USD.  Also read this article that explains 3 charts that you should always take a look at when preparing for the NFP Report release.