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

GBP/USD Forecast 3 June 2016

You are here

GBP/USD Forecast 3 June 2016
4.7/5 of 6 ratings

The labor data will clarify the FOMC intentions

Yesterday's US data were positive. The ADP showed an increase by 173K in May against 166K in April. The weekly number of jobless claims fell from 268K to 267K.

This creates the prerequisites for a good key labor data today. The NFP is forecasted at 164K in May vs. 160K in April. The general unemployment rate is expected to decrease from 5.0% to 4.9%. Average hourly earnings are expected to grow by 0.2%

Also, the factory orders are forecasted at 0.9% in April. The Ism non-manufacturing PMI is expected at 55.5 against the previous 55.7. The UK Services PMI is expected to rise from 52.3 to 52.5.

How to trade

After the yesterday’s movement, the pair GBP/USD kept the key levels on the hourly chart: 1.4482, 1.4390, 1.4357. The pair may continue to decline if drops below 1.4390. We would buy put options if the pair falls below 1.4390. We would buy call options if the pair rises above 1.4482.

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