We are very much on NFP watch at the moment and we are seeing CFD traders and our FX clients closing positions that they may have had open since the Jackson Hole meeting on Friday last week. The markets are expecting an increase of 180k jobs to have been created so we will be watching that number closely. There are numbers out this afternoon which can give a steer as to where tomorrows may come in.
Dean's Daily FX Update – 01 September 2016
Despite some quite big moves in the Euro, we have barely changed from where we were at the start of the month. The dollar has been strong since Friday and we may see some profit taking at the current levels. The market seems to have stalled and unless the numbers this afternoon are way off predictions, we don’t expect there to much movement until tomorrow afternoon. Some divergence taking place between price and MACD and stochastics heavily oversold.
In GBPUSD, the market has been pretty range-bound for the month. We are starting to approach the upper end of the range and Dean is starting to look for reason to be short this pair again.
Dean is expecting a bit of a rally in the AUDUSD but wants to trade with the trend. Current trend is downwards and would be looking to reestablish short positions if the market got back towards the 61.8% Fib level and the resistance at 0.7625.
The Kiwi has been very resilient and we have had multiple attempts at yearly highs. Dean is seeing this forex pair moving back towards the 0.7320 where he will be looking to see how it price reacts.
Dean feels like he has been waiting an eternity to establish a short position in the USDCAD. 1.3180 has been a huge level of resistance and with weaker oil prices we are approaching that level again. A strengthening of the oil price should provide a reason to be short this pair and see some CAD strength.
The Yen has seen some significant weakness since Friday but starting to approach levels where Dean would look to establish short positions. Looking at between 103.60 and 104.50 but will be watching the price action closely.
A great deal of patience needed in these markets and don’t be tempted to over trade or enter positions too early. Should get some more clues after Non-Farm Payrolls tomorrow.
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