Forex Signals Brief for Aug 11: UK Jobs in Focus
Rowan Crosby • 2 min read
US Market Wrap
US markets have opened the week relatively flat and the good jobs report from Friday appears all but forgotten.
With the summer holidays in full swing and earnings season virtually behind us, it looks like there were some traders and investors who were keen for a little break.
That said, with the stimulus situation still not resolved, there is going to be some more work to be done. If some kind of package gets over the line, that could be a big boost for markets and even the USD.
The Data Agenda
The story of the last week or two has been around jobs. First, it was the US non-farm payroll data and now it is the UK that is in focus.
There have been reports out of the UK, that one in three companies is looking to cut jobs. So clearly there will be some attention on today’s update.
The GBP/USD is expecting to see employment claims creeping higher as jobs fall away. However, the unemployment rate is still steady at only 4.2% based on the June data.
Elsewhere, the EUR/USD will be watching ZEW Economic Sentiment from Germany, while in the US we get PPI for July.
Forex Signal Update
The FX Leaders Team closed one signal in the green yesterday as the price action has been someone muted early in the week.
EUR/GBP – Active Signal
The EUR/GBP has been relatively range-bound over the last few months and we can see that price has been bouncing off this 0.9000 region. We’re long here looking for a quick retrace.
AUD/USD – Active Signal
The AUD/USD had an up and down session yesterday. We’re short here as we attempt to get a retrace.
BTC snuck its head above the $12,000 level but couldn’t build any strength.
It is a similar situation in ETH as well at the moment. Both are knocking on the door but currently can’t attract any more buyers.
Perhaps some positive news on US stimulus, might lift the risk trade and bolster the major crypto’s as well.