As the NFP release is getting closer, USD traders are waiting to jump on the charts. GBPUSD seemed to have got into recovery mode on ‘historic Brexit deal’, but the charts show something else.
GBPUSD Up to Fresh Tops on Brexit News, NFP on Tap
Starting the day at 1.3480 (open), GBPUSD started adding pips, hovering above the 1.35 territory, but miracles in the trading world don’t last long. So, the pair slipped again below 1.34s on the Brexit announcement.
Massively influenced by the Brexit deal, prices in the cable have seen a massive sell-off on the headlines or ‘Sell the fact’ trading as soon as Prime Minister May finally struck a bargain with EU officials over a smooth divorce. Sensitive to the news, markets immediately priced in the Brexit and secured profits on GBP longs.
But, it wasn’t meant to last… The bulls jumped on the charts and started bidding massively as the market sentiment around the second stage of the Brexit negotiations was optimistic. EU officials are ready to start working on the Breit transition as soon as next week’s Summit is over, EU President Junker said. What’s in it for GBPUSD?
Moved by the news and with an eye on the NFP, GBPUSD trades around 1.34630 levels, away from 1.3588 (R3).
USD in Focus, NFP Eyed
± 200k new jobs are expected to have flooded the US labor market in November, while the unemployment rate is estimated to remain at 4.1%. With this in mind, USD traders are cautious ahead of the big data release.
EURUSD started on the NFP Friday at 1.7725 (open) and revolves around 1.7735.
Ahead of the NFP, the US dollar index, which weighs the buck against a basket of six major currencies, hit 2-week highs at 93.94. Positive news to come our way? Time and trade will tell…
USDJPY started the day at 113.204 (open) and is hovering above 113.542, while USDCAD has moved away from the 1st support line at 1.2842, trading around 1.28500. Resistance is to be expected around 1.2864 (R1), 1.2886 (R2) and 1.2913 (R3).
The Loonie gained momentum from the BOC communication of an imminent rate hike, pushing the pair to test weekly tops.