Top 5 Things to Know Before You Start Trading
This super Thursday the British Pound is trading above 1.32 levels ahead of Bank of England (BOE) releases while markets get ready for tomorrow’s Nonfarm Payrolls (NFP) report.
1 – USD Decline Eased by Upcoming NFP Report
The US dollar (USD) paused its downfall spiral ahead of the all-important NFP report due out tomorrow. The USD has been suffering on speculation that the Federal Reserve (Fed) will not raise rates again this year, but also from the political fallout in the U.S. and the uninspiring U.S. economic data that have pointed to very low expected inflation.
2 – EUR Touches 2.5-Year High Against the USD
EUR/USD has reached a 2.5-year high of 1.1910 overnight, before falling again to 1.1840 levels at the time of writing. Traders now expect the EUR to test 1,20 in the coming days. Against the JPY, EUR traded as high as 131.40, its strongest since February 2016.
3 – GBP Braces for Super Thursday
GBP/USD is preserving its daily gains above the 1.32 level today, ahead of the very important BOE meeting. It’s a so called Super Thursday today for the GBP, which means that today’s rate decision will be accompanied with updated Quarterly Inflation Forecasts as well as a press conference after the meeting.
4 – Gold Near 1-Year High
Gold has risen, nearing seven-week highs, as the USD fell to a 15-month low and US data showed fewer-than-expected new jobs in July. Gold reached $1272 last night, however, a large instant drop caused it to touch $1256 before rising again to $1264 where it has stabilized since then.
5 -USD Higher than AUD & NZD
The AUD and NZD moved lower against the USD today, after the release of downbeat Australian trade balance data and as the USD mildly recovered from recent losses. AUD/USD dropped 0.55% to 0.7924, the lowest since July 26.