The latest US non-farm payroll data rolls out at 13.30 GMT
After a cautious morning we're seeing some USD demand again as US traders arrive at their desks
GBPUSD is testing 1.4580 support/demand after failing to hold gains above 1.4600-25 and rally sellers have once again found virtue in being patient. I've been saying for a while that there is room in this market for both bears and bulls and I've chosen to be a rally-seller whilst recognizing/respecting those buying dips too. The trend though has been firmly down.
EURUSD tested 1.0850 support early this morning after highs of 1.0934 and USDJPY has remained pinned above 118.20 since the Asian Chinese-led rally to 118.60 from 117.66
NFP expectations come in around 200k and the market appears to be banking on a strong/er number that will add weight to the FOMC's hike plans.
In my opinion then the risk comes with softer data and/or the market getting ahead of itself, not for the first time in this or any year.
Traders will then be scrambling to unload USD longs. We will find out soon enough and as always trade the facts not the conjecture.
Pick your levels/comfort zones whether it be fundamental/order/flow based or tech based and keep your discipline, as ever.
To quote Kipling once again:
If you can keep your head when all about you are losing theirs and blaming it on you
If you can trust yourself when all men doubt you but make allowance for their doubting too
If you can meet with triumph and disaster and treat those two impostors just the same...
Data release or risk event action often sees complaint and vitriol from traders throwing toys out of the pram, but focus instead on controlling those things that you can.
