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.
Target price: 1.2910
Close price: 1.2948
Expiry time: 20:00 GMT