If you missed last month's excellent NFP report, you're in luck! They're having another one this Friday. Golly, it's amazing how they do that.
Friday we have another jobs report. It’s been a huge mover in the past year, and it consistently has produced single-direction moves in the GBP/USD after its release, with very few exceptions.
In the chart below, I show the expected, actual, and revised numbers from May 2004-May 2006 for the Non Farm Payroll report. It’s interesting to note that on average, over this period of time, the actual numbers are (on average) 49,000 worse than expected. 18 of 24 months in this sample showed an actual number lower than the number we expected.
Here’s a small version of the chart:
Now take into account that we have the ADP jobs report (a study produced by the payroll giant) that says we might have as many as 350,000 jobs created last month – and economists who expect a gain of 190,000 – and we have the makings of a possibly disappointing report.
The best thing that you can do for yourself this Friday is to reduce the size of your trades, to make sure that you don't lose a lot of money in the event of a huge whipsaw, and to never plan to get rich in one day.
