The latest U.S. jobs report sent stocks soaring on Friday, December 4th. The Dow Jones Industrial Average went up by 2.05 percent, the S&P 500 was up 2.12 percent, and some of the major stocks, like Apple, were up even more than this. The report indicated that 211,000 jobs were added to the economy in November,which was about 10,000 more than most experts had predicted. The cherry on top of all of this was the fact that October’s numbers were revised. The actual data revealed that there were 35,000 more jobs created than initially believed. This good news for the U.S. economy sent stocks soaring. Major commodities like gold went up, and the dollar itself climbed against most major other currencies.
This should only stress the importance of trading the news to you. Experts had predicted a good report already, with slightly over 200,000 jobs being added to the already strengthening economy. This in itself would have been enough to boost stocks a bit. The extra 10,000, plus the adjustment to October’s numbers, helped send everything upward a lot more quickly. Having been observant of this, and having the background info going into the day, you could have est up several short term trades early that would have reflected exactly what the market was supposed to do. The market isn’t always predictable, but on a day like this where things are fairly certain, you can make a lot of money just by informing yourself of world events and major pieces of economic news.
The other important thing to take away from this is that one news event isn’t enough to affect prices for long, especially when there are many more coming up in the future. You should be able to know when major events are planned, and you should adjust your trades accordingly to reflect what the likely outcome of these is going to be. The Federal Reserve, for example, has a two day meeting ending on December 16th, and they are expected to announce that they will be changing short term borrowing rates. Because rates are so close to zero right now, there’s only one direction that they can move rates, but how far they will move them upward is a mystery still. Having a good prediction of what will happen with this, and how different amounts of change will affect certain parts of the economy can help you to put together a big list of binary options trades that can be executed shortly after the news is broken. You should also have a backup plan just in case, because things are never 100 percent certain, unfortunately.
Going back to how the U.S. dollar performed on Friday, it’s interesting to note that the one major currency that the dollar struggled against was the Canadian dollar. To this, the USD fell by a single pip. For much of the day, the USD was trading higher, but because the CAD has been stronger lately, and because the pair was already close to its 2015 highpoint, traders grew more cautious as the day progressed. Prices came down toward the end of the day, and it ended up being down a pip. For most people this would seem like an insignificant change, but if you had been stringing call binaries together throughout the day, your last half of the day would have resulted in a net loss. So, remember that while fundamental indicators and news events can help your trades be profitable, you also need to keep an eye on important pieces of technical data and acknowledge major points of resistance.