Trading around the US Non Farm Payroll is one of the riskiest times to trade.
- Many professional traders with very large positions will close out before time of release.
- At the time of release the market has very low liquidity.
- Large spreads.
- Poor execution times.
- More than 1 important economic indicators released at the same time.
- Due to volatility on release large stop loss will be required.
- Timing of release is Friday afternoon USA and close to the end of trading for the week.
I would not recommend trading Non Farm Payroll. I believe it would be best to wait until after the event and see the new sentiment it creates for the USD then trade with that sentiment on a pullback early in the next week.
If anyone has any more reason please share.