A big day today with the Non-Farm Payroll numbers due out at 14:30 SA time. The last two months have yielded big trading days and some shocks but Dean not expecting a shock this time round. Expectations of 180k new jobs so watch for any big misses to both the upside and downside.
Dean's Daily FX Update – 05 August 2016
All the Sterling Pairs pulled back after the BOE cut interest rates to 0.25% as expected. Additional liquidity entered the market and another round of effective QE has begun. Dean hesitant to trade GBPUSD and other Sterling pairs for the time being.
Dean was looking for shorts in the AUDUSD yesterday. Still keeping an eye on that as it could be forming a triple top and at the 100% Fibonacci level. Still in his area of interest and will be watch the price action closely.
The NZDUSD is moving back up to the previous short position from Tuesday and likely to be strong resistance around the 0.7235 level.
In the USDCAD, the FX pair has continued to pull back but seems to be running out of some momentum. There have been some bounces off the current levels and also at the 61.8 Fib level. Remember the CAD is very correlated to the oil price so keep an eye on that too.
The 100 level in the USDJPY is fast approaching and wouldn’t be surprised of the BOJ was starting to look at getting involved.
The USDZAR is an interesting one after the elections. Dean discusses the possible impact and the possibility of a bounce and general dollar strength entering the market before the Payroll numbers.
If this is your first time trading NFP it is worth mentioning that it can have a major effect on Forex market prices. Get it right and reap the benefits, while getting it wrong can cost you dearly! Please be careful today as these numbers can have a big impact and produce some violent swings in the forex markets.
High Risk Investment Warning: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by BlackStone Futures you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. BlackStone Futures provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. BlackStone Futures recommends you seek advice from a separate financial advisor. Please take the time to read our Risk Disclosure Notice.
