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Forex Trading Tips – awaiting key economic data

Jarratt Davis
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In today’s trading session we will be awaiting key economic data to provide an opportunity to get into the market. However as it’s a bank holiday in many countries around the world news flow could be limited.

Originally updated: 08:00

Trading Bias: Neutral

Currency pair: None

Current Sentiment: None

Fundamentals:

Friday’s headline NFP figure was much lower than expected, coming in at 126k below 245k expectations. However Average Hourly Earnings came in higher at 0.3% vs expected 0.2%, which dampened the blow from NFP. One factor to keep in mind is the bad weather the US has been having lately which could be the cause of the bad NFP figure.

Rate lift off expectations have been put back slightly for the US, however the Fed still have the option to raise rates in the second half of this year. We can expect the USD to remain slightly weaker over the coming sessions due to the poor NFP reading. However we still expect USD strength to return against the weaker currencies.

NFP saw EURUSD rally back to the 1.10 level, however we’re viewing anywhere from 1.1000 – 1.1200 as a good selling zone for a medium term trade. Mainly it’s because we expect this pair to make its way down towards parity over the coming months.

Technicals:

At this stage of the session, with limited news flow to present a reason to get into the markets I will be waiting for pairs to approach key levels of support/resistance and trade the overall trend in line with the fundamentals. This will of course be in conjunction with any news flow we have that provides the market with fresh sentiment and a reason to start getting involved in the market.

Other Market Moving News:

On today’s calendar we have; Spanish Unemployment Change, Canadian Ivey PMI and US ISM Non-Manufacturing PMI.

Today is also a bank holiday in many countries around the world. Trading might be more volatile and irrational.

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