The market is on Non-Farm Payroll watch which will be out at 14:30 SA time. It has been like watching paint dry and with a holiday in the US (Labor Day) on Monday, no one seems to want to make a call on the markets. Dean won’t be trading ahead of the numbers or the long weekend but gives us an idea of what may take place. The NFP data will possibly determine whether a rate hike in September is likely. Another good number will put this firmly in play. Expectations are for 180k.
Dean's Daily FX Update – 02 September 2016
We got a bit of a movement off the divergence we discussed yesterday. The EURUSD moved up to the previous support line 1.1190. Not a lot of action at all.
GBPUSD has started to consolidate around the 1.3270 level and may see a move up towards the 1.3480 level but we are seeing MACD and stochastics are starting to turn and if you have the same longer term view as Dean, then he will be looking to reestablish shorts.
In the USDCAD, the market seems to be taking into account that the numbers will be better than expected and taking a bit of a punt. It has moved up towards the recent highs at 1.3180 and although Dean would like to get short, he is concerned that this could pop if the numbers are good.
The USDJPY has finally got up to near the 104 level where Dean is starting to get interested. He will be waiting until after the weekend before getting involved.
The USDZAR is back at a major support and resistance line. Dean still convinced we will get a big pull back as soon as the Minister of Finance is back in the clear.
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