Top 5 Things to Know Before You Start Trading
Trading is mixed ahead of the Nonfarm Payroll (NFP) report. The British pound is lower while indices are higher.
1 – USD Lower Ahead of NFP Report
The US dollar (USD) fell to a 2 and a half year low against the Euro (EUR) and a 7-week low versus the Japanese Yen (JPY) on Friday in the wake of weak U.S. data, awaiting the closely watched non-farm report later in the session for potential relief.
2 – A Positive NFP Report is Expected
Economists polled by Reuters expect U.S. employers to have added 183,000 jobs in July, down from 222,000 in June. If the number disappoints, expectations for a rate hike this year will fall more than they already have by now, making it highly unlikely that the Federal Reserve (FED) will proceed with a rate hike. Hence, a weak number today could potentially hurt the USD.
3 – GBP Lower As BOE Keeps Interest Rates Unchanged
The GBP/USD took a beating overnight after the Bank of England (BOE) voted 6-2 to keep interest rates at current record lows and lowered its forecasts for growth, inflation, and wages, disappointing investors who expected more hawkish messaging. The British Pound (GBP) dropped from 1.3267 to 1.3112. It trades now at 1.3140.
4 – Equity Indices Hit Highs
Major equity indexes in the U.S. fluctuated in relatively tight ranges and finished the day not too far away from their opening levels on Thursday. After hitting another fresh record high during the first half of the day, the Dow Jones Industrial Average retraced its gains in the last hour.
5 -WTI Prices Lower
West Texas Intermediary (WTI) Oil was at $48.93 per barrel at 03:45 GMT, down 10 cents, or 0.2%, from their last close and around 90 cents for the week.