British Pound Rallies as Improving Labor Market Reduces Need for Easing
Here you can find all the latest breaking forex and currency news about British Pound Rallies as Improving Labor Market Reduces Need for Easing including currency analysis and forecasts, live foreign exchange rates, central bank interest rates, and currency trading strategies from experienced fx traders and forex platforms.
Talking Points:
- Best UK jobs change (+250K vs +165K expecte) since July 2010 (+282K).
- BoE warns continued strength in Pound could future growth prospects.
- All eyes turn to FOMC at 19:00 GMT.
To keep up with the European data and news as the week goes forward, be sure to sign up for my distribution list.
Intraday Price Perspective
A scan of this morning’s best and worst performers via the Strong/Weak app shows that the British Pound has easily outperformed its major counteparts, mainly due to the strength in incoming labor data this morning (see below). The 3M Unemployment Rate unexpectedly to 7.4% amid jobs growth of +250K, easily outpacing expectations of both the market and forecasts set forth by the Bank of England.
Considering that today is a FOMC day, volatility is likely to spike higher in several hours on information that could offer materially change the short-term trading horizon. Accordingly, as we see that GBPNZD is a top performer across the four timeframes covered, we will use this opportunity to rexamine the long strategy set forth originally on Monday:
TECHNICAL ANALYSIS – CHART OF THE DAY
GBPNZD H4 Chart: October 11 to Present
Want to automate your trading or trade baskets of currencies? Try Mirror Trader.
- Going back to May 30, the GBPNZD has traded in a range between 1.8860 and 2.0060 (with a brief break higher for three days from November 28 to December 1).
- The Symmetrical Triangle (black lines) that led to a break higher in mid-November has given way to another Symmetrical Triangle since November 29 (red lines).
- The recent Symmetrical Triangle (red lines) appears to be breaking to the upside today.
- Price has climbed above its short-term EMA envelope on m15, H1, and H4.
- RSI (21) on the H4 timeframe, after consolidating alongside price, is starting to break higher.
- A move in price into the 1.9925/2.0060 zone, confirmed by RSI (21) climbing above 55, would suggest a break higher could be coming.
- First target on a break higher is 2.0285. Bullish bias invalidated at 1.9500.
Here’s the other data influencing and that will influence European FX price action today:
EURO-ZONE ECONOMIC CALENDAR
UK ECONOMIC CALENDAR
SWISS ECONOMIC CALENDAR
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail [email protected]
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, please fill out this form
original source
The article above is about breaking forex and currency news regarding British Pound Rallies as Improving Labor Market Reduces Need for Easing, if you have any question about it. Please contact us by using the link below. Thanks for your patience.
- Japanese Yen Gains, Nikkei Falls as BOJ Leaves Policy Unchanged
- Chinese Business Sentiment Contracts for the First Time in 4 Months
- Dismal UK Retail Sales to Spur Another Test of GBP/USD Resilience
- Forex-Webinar:-FOMC-Minutes-Reinforce-Hike-Forecast
- Trading Video: Dollar Fails to Rally on Hawkish FOMC, Equities Rally
- Among Top Themes, Where is the Risk Most Potent: Fed Hike, China, EM?
- EUR/USD Technical Analysis: Looking to Short on Bounce
- US Dollar Declines as FOMC Minutes Bring Nothing New to the Table
- US DOLLAR Technical Analysis: USD Holds Support on FOMC Minutes
- WTI Crude Oil Price Forecast: What Now That $40bbl Broke?
- Fingertrp Scalping with James Stanley (Using Tradingview Charts)
- EUR/USD Risks Fresh Monthly Lows on Hawkish FOMC Minutes
- Analyst Pick - Kiwi & CAD in Focus
- Price & Time: USD/CAD ? It?s Showtime
- GBP/USD Ranges Ahead of FOMC Minutes
- President Xi Warns That China Faces Considerable Downward Pressure
- FOMC Minutes Later Today - USD Set for October 28 Redux
- Silver Price Is Targeting Its Yearly Low
- FTSE 100: Commodity Markets Wants to See The FTSE 100 at 6040
- DAX 30: Momentum Slows Down, FOMC Minutes on Tap
- US Dollar May Extend Gains as Fed Minutes Foreshadow Rate Hike
- Copper Surplus Faces Falling Premiums; Gold Slides before Fed Minutes
- China Real Estate Market Recovery Slows in October
- Traders Not as Confident of Fed Hike as Markets, Economists
- EUR/GBP Technical Analysis: Euro Drops to 3-Month Low
- Dollar Unmoved After China Treasury Holdings Hit a 7 Month Low
- Can Dollar Climb Continue After FOMC Forecast Shift?
- Dollar’s CPI Rally Lacking, Stall in Risk Raises Yen Crosses Appeal
- NZD/USD Technical Analysis: Short Trade Activated Sub-0.65
- Will the DAX Crack or Cower from Resistance?