- Another US NFP Friday sees thin markets and constrained liquidity ahead of the key reading.
- Brexit hangs like a cloud over Pound traders, with little promise of answers to come in the near-term.
The GBP/USD is trading into the 1.3000 major handle heading into Friday's London market session after catching a bullish rebound on Thursday from the week's low of 1.2922.
Friday has a thin calendar on the offering for the GBP, with only the low-tier Halifax House Index at 07:30 GMT, with the quarter-on-year figure for September forecast to come in at 3.3%, with the previous quarter's reading coming in at 3.7%.
Brexit continues to be the major driver behind the Pound, and leaders from both the European Union and Ireland are strongly urging the UK to stop wasting time and begin finding real-world, workable solutions. Meanwhile, UK Prime Minister Theresa May continues to try and salvage her belly-up Chequers proposals for Brexit, an outline that has been soundly rejected already by both EU leaders in Brussels and Conservative Brexiteers that populate May's own party.
It's another Non-Farm Payrolls Friday in the upcoming US session, and markets will be capping off a volume-constrained week with another reading of the mega-jobs report from the US, with median market forecasts calling for a headline reading of 185 thousand jobs, a slight pullback from the previous month's 201 thousand. Buried further within the NFP report, Average Hourly Earnings are also expected to see a hiccup, expected to print at 2.8% versus the previous 2.9%. The NFP action will kick off at 12:30 GMT.
GBP/USD levels to watch
The Sterling is struggling to develop real momentum in either direction, as Brexit headlines continue to hang the GBP out to dry, and as noted by FXStreet's own Valeria Bednarik, "the 4 hours chart shows that the pair was unable to surpass a flat 200 EMA, but so far holds above an also directionless 20 SMA. The Momentum indicator in the mentioned chart maintains its upward slope within positive territory, but the RSI indicator is currently easing around its mid-line, rather limiting the upward potential than favoring a new leg lower. Renewed selling interest below 1.2960, however, should open doors for a steeper decline toward a major static support at around 1.2880."
Support levels: 1.2960 1.2920 1.2880
Resistance levels: 1.3040 1.3085 1.3120
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.