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GBP/USD Forecast 11 July 2016

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GBP/USD Forecast 11 July 2016
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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

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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