Trading Strategy For US ADP NFP Employment 06/30/10

ADP or Automatic Data Processing (NASDAQ:ADP) is releasing it’s own estimate for the private sectors of NFP (Nonfarm Payroll).  This is high impact release and it’s followed by currency traders as they look for hints on the Friday NFP official release.  Here’s the forecast:

8:15am NY Time US ADP NFP Change      Forecast 59K     Previous 55K
ACTION: USD/JPY       BUY 110K         SELL 10K

The ADP NFP Employment Release is aways considered as a high impact release because ADP is the largest private payroll processing provider in the U.S., traders in general pay more attention to this release, especially during NFP week. ADP usually releases its version of Non-Farm Payroll numbers before the actual NFP based on it’s proprietary private payroll data.

I usually don’t trade the ADP figure but I rather use this release as a reference for market trend; however, I assume that most investors are likely to do the same, but if the deviation of 50K is actually hit, true speculators will probably have not problem jumping into the market, and this will undoubtedly change market perception on Friday’s NFP release, therefore it is best to be around your computer during the release time rather than finding out what happened hours later and perhaps missed the entire movement.

With NFP forecasted at -100K+, this ADP release may add to that negative sentiment and push JPY to new levels if we get a disappointing release.  As a matter of fact, anything short of a stellar release, market will probably not be ready to steer away from the risk aversion sentiment that’s been driving the market for the past few days.

Related posts:

1. Trading Strategy For US ADP NFP Employment 06/03/10
2. Forex News Trading Plan For US ADP NFP Employment 10/06/10
3. Forex Strategy For US ADP NFP Employment Change 08/03/11
4. ADP NFP Trading Strategy 11/03/10
5. Forex Strategy For US ADP NFP Employment Change 08/31/11
6. Forex News Trading US ADP NFP Employment Change 01/05/11
7. Forex News Trading US ADP NFP Employment Change 02/02/11
8. Forex News Trading US ADP NFP Employment 03/02/11
9. US ADP Non-farm Employment Change 03/31/10
10. Forex Strategy For US ADP NFP 10/05/11

Tagged as: ADP, Adp Payroll, Advanced Data Processing, employment release, Employment Situation, Future Market, Market Perception, market trend, NFP, Payroll Processing