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JOBS JOBS JOBS- EUR CRASH IMMINENT?

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By: Adam Stone
March 7th 2014 6:50pm GMT, London UK
 
Binary options traders will be heavily focused on one thing and one thing only today: Jobs data. The NFP payrolls reports is set for release today at 13:30 GMT today and the world will be watching. As opposed to many other important news event, this is the one everyone, everywhere will be watching with bated breath as it’s the single most watched and focused on news event of the economic calendar. It’s such an important indicator for a few reasons:
1. It is the widest indicator of economic strength from a consumer perspective.
2. Can be directly linked, in economic terms, to the strength or weakness of the economy
3. Historically, it has created the biggest the moves the market has ever seen. More than war, terrorist attacks, crashing economies or any other exogenous event to date.

us-jobs_1965018b

So all together, the subjective and the objective, creates an atmosphere of carnage. If you were able to be on the trading floor of a massive brokerage or if you had the privilege of standing in a trading pit in the Chicago Mercantile Exchange or better yet simply stand and look into the screen farm of a prop trading firm, you would see complete quiet in the seconds leading to the release. A type of eerie and ominous quiet perceivable and knowable to only those who’ve seen a ghost. Well this is a ghost of markets’ past. The tsunami that is the NFP is like nothing you can imagine.

The market can head up and down hundreds of pips in a matter of seconds. So sure, traders may point to the results of yesterday’s forex trading session and think: what could be bigger than that ? Well, for those not in the know, the EUR/USD yesterday made what looks to be a preemptive move upwards, breaking right past the resistance at 1.3823. The fact that the market hasn’t retreated since is very telling.

For binary options traders today, the NFP can be make or break. Expect the usual massive moves, but with the market expecting a better than previous result, it’s a bit worrying that the market for the EUR is still as high as it is. The lack of any retreat is worrying to say the least and many advanced traders may pin this on a preemptive banker’s bluff. What this means is that the banks may be working in unison to keep the market hot on the EUR until the release of the NFP.

NFP with binary options and the EUR:USD

Once mayhem strikes, it’s off to the races and the USD can be expected to shoot higher against all currencies including the EUR. So if you were looking higher due to recent moves, think again. Stay clear of trend-thinking and stick to the short term price action in the market as the release hits. Also make sure to pay attention because at the time of the release, the actual unemployment rate is released simultaneously. While no change can be expected, you can never know which of the two bits of news the market will latch their proverbial teeth into.

Be ready for it all and have a great day trading binary options

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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