The Fundamental FOREX Blog

On Wednesday, 09-02-09 at 8:15 AM ET, the “USD ADP Non- Farm Employment change” was released by Automatic Data Processing, Inc.

I wrote a “preview” post on Tuesday, 09-01-09, click here for a review.

I decided that the GBP/JPY currency pair would be the one to watch for this report – here is what happened:

USD ADP Non- Farm Employment Change stats:

Previous = -371K revised = -360K

Forecast = -250K

Actual = -298K

This “actual” report was down 48K from the “forecast” which is bad for the USD, the revised “previous” did show some minor improvement to last month.

I was looking for a 50K difference for a trade entry, but 48K was close enough. So I did a trade – here are the charts.

a one minute GBP/JPY chart

#1. Traders may have been waiting for the “revision” before a decision about what to do was made.

#2. Finally, when the market turned down and my broker “spread” and “slippage” returned to normal I entered my “sell” trade and won a small “scalp” and the market continued down about a total of 80 PIPS in 41 minutes. Some good “scalp” opportunities were available.

The currency cross pair EUR/JPY moved much the same way.

a one minute EUR/JPY chart

#1. Traders may have been waiting for the “revision” before a decision about what to do was made.

#2. The market headed down about 55 PIPS in 29 minutes. Some good “scalp” opportunities were available.

None of the USD involved currency pairs that I monitor moved in a “predictable” way, they seemed to move in favor of the USD – maybe because the Employment change was good for the USD.

The GBP/USD had the strongest move – take a look.

a one minute GBP/USD chart

This GBP/USD currency pair moved down about 50 PIPS in 11 minutes – had a small reversal and continued down more.

The next ADP Non- Farm Employment Change report is scheduled for Wednesday September 30, 2009 at 8:15 AM ET.

I will probably write a “preview” post a day or two before.

Stay tuned!