7:00am (NY Time) CA Employment Change Forecast -12.4K Previous -44.5K
ACTION: USD/CAD SELL +15K BUY -35K
Canadian Employment Change is expected at -12.4K this month. If we get a surprise of at least 23K, making it at -35k or +15K, then the market will most likely move 40 pips within the hour, with about an 86% of chance.
If our BUY/SELL figure is hit. However, it is important to keep an eye also on the Unemployment Rate, which is expected at 8.7%, and if it does not conflict with the Employment Release, then we’ll follow our trade plan. In the event of a conflict, it will be a no trade.
Remember this is a moderate slow moving currency pair, but NFP is coming up in about 90 minutes, so remember to take quick profits and get out of the market before the US NFP release.
DEFINITION
“Measures the change in number of employed people during the previous month. A rising trend has a positive effect on the nation’s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.”
[flv:http://www.newsprofiteer.com/090409-cademployment/090409-cademployment.mp4 480 360]
UPDATE: Release was much better than expected, but market failed to act with momentum. I took a trade off from the retracement and ended up closing the trade with 1+ pip of profit. However, it is a great lesson as I show how it is with news trading. I recommend that you take a few minutes and watch this video.
Related posts:
- Canada Employment Changes 11/06/09
- Canada Employment Changes 12/04/09
- Forex Trade Plan & Video For Canada Employment Change 08/06/10
- Forex News Trading Canada Employment Change 02/04/11
- Trade Plan For Canada Employment Change 06/04/10
- Canada Employment Change 02/05/10
- Forex Trading Strategy For Canada Employment Change 07/09/10
- Canada Employment Change Forex Trading Strategy 09/10/10
- Forex News Trading Canada Employment Change 03/11/11
- Forex News Trading Canada Employment Change 01/07/11
{ 1 comment… read it below or add one }
Hi Henry, I shorted this on the second chance retrace for 100 pips after NFP did its crazy double spike.
The stuff I’ve learned in the ebook and blog has helped me sidestep disaster so many times and has changed the way I trade forever. Thank you for making that difference.