GBPUSD bullish over key 1.2700 level

Today's Highlights

• The UK Will Pay

• NFP Today

• Referendum Italia

Please note: All data, figures and graphs are valid as of December 12th. All trading carries risk. Only risk capital you're prepared to lose.

Market Overview

The markets are trading very cautiously ahead of some major events. Stocks declined in Europe and the USA yesterday. The DJ30 was the only gainer. The SPX500 was down slightly and the Ger30 led the losses in Europe with a loss of 1%.

So far today all Asian markets are down.

Oil continued to rise, almost touching $52 a barrel while Gold, Silver, and Copper held more or less steady.

The big winner in the currency markets is the British Pound Sterling. This as the UK government announced that they were willing to consider paying for access to the Eurozone. It's just a thought at this stage, but a very comforting one.

Here we can see the GBP/USD over the past year including the Brexit referendum. You'll recall the GBP Flash Crash of October 6th as well. The decline is shown here but the spike is not shown since it didn't affect our customers.

Price action in the chart above is showing some very bullish signs. A break above 1.2700 (yellow line) would certainly be significant and lead the way for further recovery.

NFP Day!!

As you probably know today we'll get the all-important jobs report from the United States also known as the Non-farm Payrolls.

Analysts are anticipating a gain in US employment of about 175 to 180 thousand jobs in the month of November.

We've been so used to seeing the NFP from the Fed perspective. Meaning, if the numbers are good then they're more likely to raise interest rates and vice versa. However, unless today's number disappoints by epic proportions the market is expecting a rate hike this month.

If the number is indeed terrible, like below 100k, it would put the Fed, and indeed the markets, in a very awkward position of having to raise rates on weak employment.

If the numbers come in on target or better than expected then everything will be right with the world and we may even see the Trump Trade resume.

Referendum Italia

Over the weekend we'll have the historic referendum that everybody's been talking about lately.

For your convenience, we've made a video that explains the political and financial implications of this historic vote.

The vote will be on Sunday and results will most likely be only after the market opens on Sunday night. However, there will likely be many traders trying to lower their exposure and close out their trades before the weekend, so things could get pretty interesting.

Wishing you and your family an amazing weekend.