Big Whipsaw
NFP conflicting numbers
If any of u were trading this friday feb 2 at around 8:30 to 9:30 est, you would have missed a wicked volatile movement on all USD pairs. Market traders were anticipating this months employment data more than anything else as they want to know if the fed would be thinking of tightening or increasing interest rates.
This months number was 111K and the previous month was revised from 167 to 206k.
so the report was bad for the for the dollar but revisions was good. When the first number came out (111k) the market price for EUR/USD and GBP surged up about 45 pips. at this time the revisions were setting into effect and the move to 100+ pips was not manifesting. it stayed there for about 5 minutes before the big guys say to themselves: " hey, this thing aint moving no more so we better exit." The market dipped. The price returned to its original value before the report. At that time i notice alot of 20 Mill+ offers coming in and disappearing around that price. I'm not saying i'm sure about this but it looked like a major play was either liquidating a position or going short on the GBPUSD. He used small 20mills because bigger orders may slip or work against him. THe GBPUSD then gave a wicked Sell 50 pips downwards and returned 30 or so up after that movement. So it was a double whipsaw on the GBP, three major movements. The EURUSD however just whiped once as it moved up to 40 then dipped down 80 pips and then to a further 20 pips closing off at 1.2964. I personally gained only 16 pips from this report which i'm grateful for
