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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.37% 🇦🇺AUD: 0.34% 🇨🇭CHF: 0.26% 🇪🇺EUR: 0.18% 🇳🇿NZD: 0.14% 🇨🇦CAD: 0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/c9qsogfePj
  • $GBPUSD To Extend Slide on No-Deal #Brexit Fears, #Covid19UK Second Wave https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/09/21/GBPUSD-To-Extend-Slide-on-No-Deal-Brexit-Fears-Covid-19-Second-Wave.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/jEGvt9WMpn
  • 🇨🇭 Current Account (Q2) Actual: CHF 9.9B Previous: CHF 14.5B https://www.dailyfx.com/economic-calendar#2020-09-21
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: US 500: -0.12% Wall Street: -0.26% France 40: -0.76% Germany 30: -0.89% FTSE 100: -1.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/WZdIvNps2d
  • Heads Up:🇨🇭 Current Account (Q2) due at 07:00 GMT (15min) Previous: CHF 17B https://www.dailyfx.com/economic-calendar#2020-09-21
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/s8MwR4fS22
  • #USD, #GBP, #EUR Volatility Ahead of Cross-Continental Geopolitical Risks 🌎 https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/21/USD-GBP-EUR-Volatility-Ahead-of-Cross-Continental-Geopolitical-Risks.html
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/UalZ8cRSXB https://t.co/YqhzoZ7Iy2
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.06%, while traders in NZD/USD are at opposite extremes with 71.15%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HBqqTapm9J
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.38% 🇬🇧GBP: 0.33% 🇨🇦CAD: 0.25% 🇯🇵JPY: 0.25% 🇨🇭CHF: 0.19% 🇳🇿NZD: 0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JH55ljBb9H
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

2020-09-04 08:17:00
Nick Cawley, Strategist
Share:

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.
Starts in:
Live now:
Sep 21
( 10:09 GMT )
Recommended by Nick Cawley
Key UK Events and Markets for the Week Ahead
Register for webinar
Join now
Webinar has ended

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.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Nick Cawley
Building Confidence in Trading
Get My Guide

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

GBP/USD Drifts Ahead of NFPs, FTSE 100 Breaks Support After US Equity Rout
GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% 3% 5%
Weekly -8% 22% 6%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

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.

Equities Forecast
Equities Forecast
Recommended by Nick Cawley
Get Your Free Equities Forecast
Get My Guide

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