And especially Non-Farm Payroll. Which is today. In general I don’t like news. This week has not been good. There have been dollar news almost every day (Monday there were none). You can get tossed around in a lot of trades as one good piece of news is followed by another bad news a few hours later. Also. I have seen diverse rate decisions remain unchanged this week resulting in spikes and sudden moves up or down anyway.
So. The problem with Non-Farm Payroll is that if you are in a trade and it can even be profitable and near your target. Everything can change just like that and your trade will move towards a loss. Trying to guess what will happen before has been a losing strategy. Jumping in as early as possible as soon as you see a move is also not good. Spread widens too much, and you can still get caught in the wrong direction.
So here is what I will prefer to do. I will avoid USD and CAD pairs. This day I will test what happens with 3 pairs (EURCHF, GBPAUD and NZDJPY). Can I be right that these pairs will be less affected than dollar pairs? The EURGBP is another one I suspect will not move like crazy too. Is there any interest that I post the movements for these 3 pairs here from release of the news (1330 CET) until the markets close? One more detail. ISM Services PMI will be released 90 minutes later than NFP. If the news is bad for the dollar on NFP and good for PMI. Is that really enough to switch the markets around? It seems like news over load to me. Sometimes it should just be ignored.