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GBP/USD Trading - ADP nonfarm employment change - 5 Jan 2017

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GBP/USD chart 5 Jan 2017
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Yesterday the pair GBP/USD showed growth thanks to the British data.

British macroeconomic indicators out better than expected. The FOMC Minutes hinted that the policy of stimulation of Donald Trump can enhance economic development and orient regulator to a moderate increase in rates.

Today it’s worth to pay attention on the US data.

The main idea of the FOMC minutes was that the rate increase will take longer than expected. That is, this year we can’t see a three times increase rates as we didn’t see the promised four times increase in the past year.

Today the UK is to publish data on Services PMI index. The December forecast is 54.7 against 55.2 in November, but due to the increase in Services PMI in all major regions we expect the figures better than expected.

In the evening, the United States will present their statistics. The non-farm employment change from ADP is expected to be 171K vs. 216K in November. The number of jobless claims is expected to be 260K vs. 265K previously. If the forecast on the Jobless Claims is justified, it creates a good basis for tomorrow's non-farm payrolls data.

However, today, the dollar is still under pressure - the ISM Non-Manufacturing PMI is projected to decrease from 57.2 to 56.6 in December.

How to trade binary

During today's Asian session the British pound rose to new weekly highs. The buyers aimed to overcome the level of 1.2365 as the breakdown of this level will lead to continuing growth in the area of 1.2390. The level of 1.2325 is a strong support level. The fixation of the pair below this level will trigger a decline in the area of 1.2303.

We would buy Put options if the pair falls below 1.2325. This scenario would be invalidated if the pair goes above 1.2365, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2325
Expiry time: 21:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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