The GBP is the strongest. The AUD is the weakest before the Employment reports

Technical Analysis

Author: Greg Michalowski | forex

THe USD is trading mixed

As the traders await the US and Canada employment reports, the GBP is the strongest while the AUD is the weakest. A softening from Barnier is being cited for the GBPs move. The AUD just trundled lower on trade concerns. 

Below is a snapshot of the % changes of the major currencies vs each other before the US and Canada employment numbers at the bottom of the hour. The USD is mixed ahead of the number. The CAD is more bid with most of the gains vs the weak AUD.

The action in the GBP pair can be seen in the ranges (lower chart in the graphs below). The GBP pairs are the ones with the largest trading ranges.   The GBPAUD, GBPNZD, and GBJPY are the biggest gainers (in pips). All are off their high levels but still up a good amount on the day.  

The EURUSD, USDJPY, USDCHF, and NZDUSD are all within 12 pips of the unchanged line on the day.  The GBPUSD is up 59 pips but has come off a bit into the risk event.

Speaking of risk...lots of risk in trading today. Not only do we have the employment reports, but trade concerns (Canada, China, now Japan, etc) still are a focus. UK has the potential for Brexit headlines.  Lots and lots of risk folks. That could lead to nervous and choppy markets. If you don't like that thing, take a back seat and watch. There will always be another trade that suits your risk boundaries.  If you do trade understand your risks.  Anticipate.  

In other markets:
  • Bitcoin remains below the 100 day MA at $6871. It trades at $6400
  • Spot gold is up $1.64 at $1201.79
  • WTI crude is up $0.28 at $67.87
US stock futures are implying a lower opening:
  • DOw is down -34 points
  • Nasdaq futures are down -16 points
  • S&P futures are down -5 points 

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