How to Make Money with Forex Using Employment Statistics in the United States
Analytical methods for predicting future foreign exchange volatility by analyzing “basic elements of the economy” such as interest rate policy or employment statistics.
The value of the economic indicators is predicted as follows. First, experts such as financial institutions or expert advisory groups will make predictions, next information providers such as Reuters will collect and summarize, then aggregate as a market forecast.
In addition to this predicted value, the actual published value (foreign exchange movement will follow the prediction or will be different from expected) is also very important and it will become a major cause of market volatility after the announcement of the predicted value.
Foreign exchange immediately after the announcement of the economic indicators will have high probability of fluctuating on one side in a few minutes, so taking advantage of this fluctuation you can make money from Forex trading.
How to trade using employment statistics in the United States
Employment statistics in the United States are published by the US Department of Labor at 8.30am on Friday, 1st week of the month New York time, or 8.30PM in Viet Nam time (summer time is 7.30PM).
Include 10 subjects, including 2 notable subjects with major statistics. Those are “Non-farm workers” and “unemployment rate.”
The most common is that, if the actual values of certain economic indicators are better than the predicted value (for example, the number of non-farm workers increases …), it would lead to buying USD
In cases where actual values are widely different from the expected values, there will be likely a large fluctuation in FX, giving an opportunity to make more money.