Sorry, you need to enable JavaScript to visit this website.

GBP/USD Trading - US Non-farm payrolls - 7 Oct 2016

You are here

GBP/USD Trading - US Non-farm payrolls - 7 Oct 2016
5/5 of 3 ratings

Cable initially fell by 580 points

Today during the Asian session we saw something incredible. In 10 minutes the Cable initially fell by 580 points. But then GBP/USD returned 450 points. We have no information about the causes of this decline from the current news agencies. Obviously, this was more than aggressive selling in the market.

Today the US will present data on the labor market.

The non-farm payrolls are expected to grow from 151K to 175K. The unemployment rate is expected unchanged 4.9%. The average hourly earnings can increase by 0.2% vs. the previous 0.1%. It’s also worth to pay attention to the speeches of the representatives of the Fed's Stanley Fischer, Meister Lorette, Esther George, Lael Brainard.

After such a decline the British data are unlikely to be important. The manufacturing production is expected to grow from -0.9% to 0.5%. The UK Trade Balance is expected with improvement: -11.1 billion pounds vs. -11.8 billion in July.

How to trade binary

We would buy Call options if the pair GBP/USD rises above 1.2550. We would buy Put options if the pair falls below 1.2380.

Expiry time: 20:00 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.

You may also read