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Friday, October 7th
GBP/USD
Current price: 1.2453 (-1.3%)
Session range: Open 1.2615 High 1.2625 Low 1.1991
Latest trend: Bearish
Expected trend: Bullish
Daily volatility: Low
Support and resistance levels: S. 1.2399 R. 1.2715
Main drivers: UK Manufacturing Production, US Nonfarm Payrolls, US Unemployment Rate
Overview: The pound is consolidating part of its unseen drop of 5 figures. Today in the mid-Asia the GBP/USD pair fell from 1.2610 to its record lows of 1.1991 and there are no direct cues on what caused this collapse. Some analytics believe that it is market’s reaction on French President F.Hollande comments regarding Brexit negotiations, some others think that “Fat finger” or crash in bank liquidity system could cause this type of consequences. But for sure it became possible only after T.May comments of “hard Brexit” that had triggered major sell-off of the pound. Currently the GBP/USD pair is trading near mid-1.24 level partially recovering its position.
EUR/USD
Current price: 1.1124 (-0.2%)
Session range: Open 1.1150 High 1.1153 Low 1.1104
Latest trend: Bearish
Expected trend: Bearish
Daily volatility: Low
Support and resistance levels: S. 1.1095 R. 1.1241
Main drivers: US Nonfarm Payrolls, US Unemployment Rate
Overview: The EUR/USD pair has followed global markets sentiment and hit its two-month lows at 1.1100 region. Currently euro remains in its bearish trend majorly led by strong demand for US currency triggered by massive dollar’s upsurge in cross with GBP. Moreover, ongoing speculations of a stronger-than-expected NFP are also supporting USD this Friday. However, the downside of the pair remains limited as euro also has refreshed its 7-year highs in cross with pound thereby preventing further drop in the pair.
USD/JPY
Current price: 103.88 (-0.1)
Session range: Open 103.94 High 104.04 Low 103.53
Latest trend: Bearish
Expected trend: Bullish
Daily volatility: Moderate
Support and resistance levels: S. 103.00 R. 104.64
Main drivers: US Nonfarm Payrolls, US Unemployment Rate
Overview: The yen has erased its recovery led by pound’s-crash and now again is eyeing on its yesterday’s highs in the region of 104.00. However, after wave of nervousness triggered by pounds huge drop the pair met fresh bids as BOJ Governor H. Kuroda provided markets with fresh portion of dovish comments regarding Japanese monetary policy. Now focus shifts to the much awaited US Nonfarm Payrolls lending some support to the safe-haven currencies such as Japanese yen.
USD/CHF
Current price: 0.9816 (0.1%)
Session range: Open 0.9809 High 0.9834 Low 0.9800
Latest trend: Bearish
Expected trend: Bullish
Daily volatility: High
Support and resistance levels: S. 0.9702 R. 0.9870
Main drivers: US Nonfarm Payrolls, US Unemployment Rate
Overview: Today the US dollar is trading on a firm note against its Swiss counterpart. The dollar remains well bid across the market lately on the expectations of a stronger NFP report coupled with sharp cable’s fall of 6%. Furthermore, weaker-than-expected Swiss CPI and positive US Initial Jobless Claims released on Thursday additionally are stimulating pair’s bulls. However, the upside also remains capped on the back of expanding risk-off sentiments ahead of crucial NFP release that is lending some support to the safe-haven currency such as Switzerland’s franc.
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