It’s NFP Friday, forex fellas!
Will we see a strong jobs report or another disappointing one?
More importantly, how might dollar pairs react?
But first, check out the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Asian shares weaker on renewed Delta variant concerns
RBA head Lowe: Not targeting low AUD, just a result of policy
Lowe: Australian economy bounced back faster than expected
RBA: Recent lockdowns could temporarily reverse job market improvements
Upcoming Potential Catalysts on the Economic Calendar:
BOE MPC member Broadbent’s speech at 11:15 am GMT
Canadian employment change report at 12:30 pm GMT
U.S. non-farm payrolls, unemployment rate, and average hourly earnings at 12:30 pm GMT
Canadian Ivey PMI at 2:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: GBP/USD
I’ve still got Cable on my radar for today, as the pair looks prime for a breakout from its tight consolidation pattern on the short-term chart.
The pair has formed lower highs and found support around 1.3900, creating a descending triangle formation.
Is GBP/USD a buy or a sell?
Stochastic is hinting that bears are about to take over and go for a downside break, possibly sending Cable lower by the same height as the chart pattern.
The 100 SMA is above the 200 SMA for now, but a bearish crossover is looming. Once that happens, more sellers could hop in and sustain a drop.
Of course it could all boil down to the outcome of the U.S. NFP report, as analysts are expecting to see a slightly faster pickup in hiring for July.
Leading indicators are giving mixed signals, with the ADP report printing a downside surprise and the ISM surveys reflecting stronger employment for the month.
In any case, I’m gonna keep my eyes peeled for a move in either direction, especially since the post-NFP dollar reaction is typically sustained throughout the rest of the U.S. session.
