We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • AUD/USD has had the most impressive show of trend over the past couple of months with the pair gaining almost 1500 pips from the March low. Get your $AUDUSD technical analysis from @JStanleyFX here: https://t.co/vLz4Rpln3u https://t.co/AOwnJja5V8
  • Has the #Euro been saved? Find out from @CVecchioFX here: https://t.co/eiXfOTyGa6 https://t.co/AyRiYpb4cN
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/ygwjGNvS61
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/THWhPAS6AM
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
British Pound Rallies as Improving Labor Market Reduces Need for Easing

British Pound Rallies as Improving Labor Market Reduces Need for Easing

2013-12-18 11:05:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- Best UK jobs change (+250K vs +165K expecte) since July 2010 (+282K).

- BoE warns continued strength in Pound could future growth prospects.

- All eyes turn to FOMC at 19:00 GMT.

To keep up with the European data and news as the week goes forward, be sure to sign up for my distribution list.

Intraday Price Perspective

British_Pound_Rallies_as_Improving_Labor_Market_Reduces_Need_for_Easing_body_Picture_1.png, British Pound Rallies as Improving Labor Market Reduces Need for Easing

A scan of this morning’s best and worst performers via the Strong/Weak app shows that the British Pound has easily outperformed its major counteparts, mainly due to the strength in incoming labor data this morning (see below). The 3M Unemployment Rate unexpectedly to 7.4% amid jobs growth of +250K, easily outpacing expectations of both the market and forecasts set forth by the Bank of England.

Considering that today is a FOMC day, volatility is likely to spike higher in several hours on information that could offer materially change the short-term trading horizon. Accordingly, as we see that GBPNZD is a top performer across the four timeframes covered, we will use this opportunity to rexamine the long strategy set forth originally on Monday:

TECHNICAL ANALYSIS – CHART OF THE DAY

GBPNZD H4 Chart: October 11 to Present

British_Pound_Rallies_as_Improving_Labor_Market_Reduces_Need_for_Easing_body_x0000_i1028.png, British Pound Rallies as Improving Labor Market Reduces Need for Easing

Want to automate your trading or trade baskets of currencies? Try Mirror Trader.

- Going back to May 30, the GBPNZD has traded in a range between 1.8860 and 2.0060 (with a brief break higher for three days from November 28 to December 1).

- The Symmetrical Triangle (black lines) that led to a break higher in mid-November has given way to another Symmetrical Triangle since November 29 (red lines).

- The recent Symmetrical Triangle (red lines) appears to be breaking to the upside today.

- Price has climbed above its short-term EMA envelope on m15, H1, and H4.

- RSI (21) on the H4 timeframe, after consolidating alongside price, is starting to break higher.

- A move in price into the 1.9925/2.0060 zone, confirmed by RSI (21) climbing above 55, would suggest a break higher could be coming.

- First target on a break higher is 2.0285. Bullish bias invalidated at 1.9500.

Here’s the other data influencing and that will influence European FX price action today:

EURO-ZONE ECONOMIC CALENDAR

British_Pound_Rallies_as_Improving_Labor_Market_Reduces_Need_for_Easing_body_x0000_i1029.png, British Pound Rallies as Improving Labor Market Reduces Need for Easing

UK ECONOMIC CALENDAR

British_Pound_Rallies_as_Improving_Labor_Market_Reduces_Need_for_Easing_body_x0000_i1030.png, British Pound Rallies as Improving Labor Market Reduces Need for Easing

SWISS ECONOMIC CALENDAR

British_Pound_Rallies_as_Improving_Labor_Market_Reduces_Need_for_Easing_body_x0000_i1031.png, British Pound Rallies as Improving Labor Market Reduces Need for Easing

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.