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Posted by ForexNigeria on Wednesday August 3, 2011 at 12:58:1:

By 1.15pm Nigerian time today, we hope to get the report on the USD on ADP Non-Farm Employment Change.
Now this report is a high impact one and can cause volatile price changes as high as 100 pips or less. The currencies it is expected to influence is mainly the USD and then other USD pairs like EURUSD, GBPUSD or USDCAD.
The initial details for this factor are:
Previous 157k
Expected 100k
Actual Not known yet.

How to trade this is for example, if you are trading the EURUSD and the actual value is much favourable to the USD, then USD will bull making the pair EURUSD to fall in price else if not favourable for the USD, EURUSD will bull in price.
Now given that the expected result is much higher than the initial result, it means that if the actual result turns out to be the same, there would be little change in price. If the actual result is much higher than the expected value, then USD will bull and hence EURUSD price will fall.

When trading with this report, the rule is that a higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

So EUR/USD traders should be ready as a significant change in the expected result will change the price of the paid drastically.




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