News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
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
Wall Street
Bullish
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/CHE6IOq3K5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Agl1q6EQyu
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/UmubxiDXGc
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/e4G1gTGhex
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/nHXiNJhLes
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/h0TmJcZeqr
  • $USDCAD sold off aggressively last week, putting it into position to test the important 2017 low; trading bias is neutral to bearish. Get your market update from @PaulRobinsonFX here: https://t.co/sphxUAW9TB https://t.co/ZhsTeJOOM8
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/qP96xmgDVn
GBP/USD Drifts Ahead of NFPs, FTSE 100 Breaks Support After US Equity Rout

GBP/USD Drifts Ahead of NFPs, FTSE 100 Breaks Support After US Equity Rout

Nick Cawley, Strategist

GBP/USD and FTSE 100 Prices, Charts and Analysis:

  • GBP/USD little changed despite EU/UK trade talk impasse.
  • FTSE 100 has broken multi-week support and may struggle further.

The monthly US Labor Report (NFPs) is released later today (12:30 UK) and is keeping a lid on USD-pair price action. The US dollar has regained some composure after its multi-month sell-off but it remains to be seen if this recent pick-up is sustainable, especially if today’s job report disappoints. After 22 million jobs were lost between March and April, employment in the US has been picking up but this is now slowing down with this month’s expected 1.4 million job growth lower than July’s 1.76 million and June’s 4.79 million. If expectations are made today, the US payroll report would still show that 11 million people are without a job compared to pre-COVID-19 levels.

NFP and Forex: What is NFP and How to Trade it?

The British Pound remains elevated against the US dollar despite increasingly gloomy EU/UK trade forecasts. The ongoing, and overriding, message that neither side is willing to shift on major areas of concern – fisheries and level playing field commitments – suggests that a no-deal option at the end of this year may not be fully priced into Sterling-pairs.

GBP/USD currently trades around 1.3280 and is mid-range of a recent bullish-flag formation. Support is provided by the 20-dma at 1.3204 ahead of trend support currently at 1.3188, while trend resistance is at 1.3360. The pair are no longer in overbought territory (CCI), while volatility (ATR) is steady around 100 pips.

GBP/USD Daily Price Chart (January – September 4, 2020)

GBP/USD Drifts Ahead of NFPs, FTSE 100 Breaks Support After US Equity Rout

US Equity Markets Roiled

The US equity space came under heavy selling pressure Thursday with the tech market hit the hardest. The DJIA closed 2.78% lower, the S&P 500 shed 3.5% while the NASDAQ lost a fraction under 5% as sellers took complete control of the market. European indices opened lower today and the FTSE 100 is now below multi-week support and may struggle in the short-term. The double-low around 5,850 had held firm until this week, but yesterday’s late sell-off broke through this support with conviction. The index needs to close and open back above this level if it is to push any higher.

FTSE 100 Daily Price Chart (January – September 4, 2020)

GBP/USD Drifts Ahead of NFPs, FTSE 100 Breaks Support After US Equity Rout

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What is your view on Sterling – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES