As the currency markets pause ahead of the monthly Non Farm Payroll release due later, I thought it would be a good time to revisit the weekly futures charts for some of the major currency pairs, and to step back a little, following a week of significant news items around the world. This helps to contextualize the NFP data, which whilst important, is simply another release in the economic calendar.
As another trading week and month gets underway, it’s time to take a look at several of the major currency pairs in the futures market ahead of what is likely to be an interesting time.
Following continued bullish momentum for many of the major currency pairs, these are now approaching key technical levels, which if breached could prove to be the tipping points for some sustained and longer term trends to develop.
GBP/USD has shown momentum in crrying on with its ongoing uptrend, as it bounced off support on the rising trend line connecting the lows on the 4-hour time frame.
Looks like the markets just about managed to avoid a mauling by the bears, who have now temporarily retreated to lick their wounds!
GBP/JPY has made a stellar rally in the past few trading days, thanks to improved fundamentals in the UK.
London, UK; 18 September 2013: GW Pharmaceuticals plc (GWPH) announced today it has commenced a Phase 1 clinical trial of product candidate GWP42006 for the treatment of epilepsy.
Political uncertainty in Italy could impact global markets, but provide a “fantastic buying opportunity.” Like Jennifer Lawrence’s fall at the Oscars, unexpected but a chance to shine ‘comedically‘, Italy’s elections have shocked investors but provided attractive entry points to strong international firms, insulated from domestic woes (as well as offer up some funny one-liners from candidates).
The British Pound tumbled near year-to-date lows and took the dubious honor of worst-performing major currency on the week, falling almost four percent against the surging Japanese Yen. Disappointing UK PMI Manufacturing survey numbers capped a difficult week for the British Pound, and indeed the stage is set for further declines into an important week ahead.
The US Dollar (ticker: USDOLLAR) traded lower against the Australian Dollar and other high-risk counterparts on a modest improvement in financial market sentiment, but overall momentum left it poised for modest gains against the Euro and British Pound. It was a quiet start to the trading week as highly-anticipated events over the weekend failed to produce material breakthroughs or shifts in financial market sentiment.
