Friday showed the market can be paradoxical.
The Cable showed an increase due to the positive data on its trade balance, -9.9 billion vs. -10.2. However, in fact, the improvement was only due to the fact that the April trade balance was revised to improve from -10.5 billion pounds to -9.4 billion pounds.
The market reacted very strangely to the US data. The change in Nonfarm Payrolls showed an increase by 287K vs. 175K. First, the dollar has strengthened significantly. However, then lost its strength.
The total unemployment rate rose from 4.7% to 4.9% and the average hourly earnings grew by only 0.1% against the expectations of 0.2% - the smallest increase in the past 3 months.
Today the important news is not scheduled. However, we continue to expect a decrease in pounds.
How to trade
We would buy put options form the current level.
Expiry time: 20:00 GMT