The USD ADP Non-Farm Unemployment Change often times will move the market when the actual report release is more than the forecast by a large amount.
The report that came out on Wednesday, the 6th of May, was one such surprise report, the forecast was a -644K, the actual report was a -491K, an improvement of +153K of employed people and good for the economy.
Strange things did happen as far as the USD was concerned, it should have been bought against most other currency pairs, but this was not the case except for the USD/JPY which moved up before the market took profit – here is a chart picture (insert USD/JPY chart).
A FOREX Chart of USD/JPY before, during and post the news release
Now, there was one currency pair which did move nicely, and that was the EUR/JPY currency pair – here is a chart picture
A one minute FOREX chart of the EUR/USD before, at and post the news report
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The USD ADP Non-Farm Employment Change is due on Wednesday, the 3rd of June. The forecast is -525K, a prediction loss of employed by 34K people. Not good for our economy.
If you are one of those traders that looks for short term “scalping” opportunities, you might keep an eye on the EUR/JPY currency pair around the time of the USD ADP report release – there might be some nice movement if the “actual” is greater than the “forecast” by say 130K, if it is good for the USD, the EUR/JPY may move up – don’t ask me why, I do not know. Or, you could get a small “scalp” off of the USD/JPY.
