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GBP/USD Forecast 8 July 2016

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GBP/USD Forecast 8 July 2016
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The pair GBP/USD could not continue increasing after the publication of non-farm employment change data from ADP

Yesterday the publication of data from ADP was the main event of the day. The data showed an increase by 172K vs. 158K.

In the UK the industrial production showed a decline. The UK GDP estimate from NIESR was the neutral: 0.6% in June, as it was in May.

Today, all the attention is focused on change in Nonfarm Payrolls. The forecast is 165K-180K vs. 38K in May.

The overall unemployment rate may be slightly corrected after the previous decline to 4.7%. However, the average hourly earnings are forecasted to grow by 0.2%. The consumer credit is forecasted to grow from 13.4 billion to 16.7 billion in May.

We are waiting for a moderate strengthening of the US dollar to 1.2810.

How to trade

We would buy put options if the pair GBP/USD descends below 1.2910.

Asset: GBP/USD
Direction: Put
Target price: 1.2910
Close price: 1.2948
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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