NFP Fundamental Analysis USA NEWS IMPACT
Nonfarm payroll (NFP) creates data for the number of people who are employed in USA for the previous month,the news is always released every first Friday of the month. if the data is higher than the previous time/month it will increase the strength of dollars (dxy) over any other currency is paired with for instance if the news is positive USD/CAD will go bullish meaning dollar at the moment of has more momentum than CAD. Same goes to when is paired with other currencies like EUR/USD as quote currency it means EUR as Base is gonna drop once the news is released during newyork time.
This month fundamental was bullish just as indicated on the investing app Also dollar index (dxy) tap into demand zone that's another signal of a bull run for dollar.
Same goes to when is paired to other currency like EUR/USD as quote that's a sell signal. If dollar has more momentum or strength when is paired as quote currency it will push down (sell) the base currency instantly that's the strategy to trade this fundamental every first Friday of the month.
When I saw dxy on the Bull run base on the NFP news I quickly switched to EURUSD on my mt4 to take the setup I sold EURUSD meaning I'm selling EUR to buy USD because USD is bullish that's how I trade during NFP in the foreign exchange market (forex).
Gold(XAUUSD) did same thing at the exact Time, USD paired with gold as quote means we are to sell gold base on the NFP fundamental which was released.
NFP is one of the highest voilatile news that moves the forex market worldwide and most traders partake during this session. Some big traders only trade this day they can just focus on the NFP that means they are only trading once in a month is like Christmas for we traders lol..
Thank you for reading
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