New traders commonly wonder how to best predict the future direction of currency pairs.

Long-time traders, meanwhile, know that following the Non-Farm Payroll Report is a great way to predict which way the USD will move, up or down.

This data release reports the amount of new jobs created within the world’s largest economy, the United States of America. When the amount of jobs created exceeds expectations, trader confidence in the USD typically rises, and so does the USD’s value. If the amount of new jobs fails to meet expectations, the value of the USD is likely to fall.

Here are 3 easy steps to mastering this trading event, and making high profits along the way.

1. Check the economic calendar to see what time the data will be released. The effects on the markets is commonly instantaneous.

2. Memorize what the analyst community has already forecasted. In the above case, analysts are expecting to see 231K new jobs. Remember: This is only an estimate, the actual number will be reported at 13:30 (in the above case).

3. Place several positions simultaneously. To do this you must understand that this event has an impact on a wide range of currency pairs, including:

For more tips on successfully trading the NFP, visit our Education Centre.