Volatility ripples across the global currency markets as the anticipated NFP release draws near. Expectations are high and this may be one of the most crucial employment reports in 2015, simply because it has the potential to turn the possibility of a US rate hike in December into a reality. Most economic data from the States has been soft this week, but Dollar sensitivity mixed with the lingering effect of last week’s hawkish FOMC statement has resulted in the USD bulls taking center stage. Today’s NFP prediction stands around 179k and if the actual release exceeds this, then USD bulls may receive another welcome boost as the likelihood of the Fed acting to raise rates in 2015 skyrockets.
The sharp change of sentiment towards the Dollar has resulted in the Dollar Index becoming technically bullish on the daily timeframe. This index has a strong upwards trajectory with previous resistance at 96.50 becoming a dynamic support. A strong NFP today may invite an opportunity for prices within the Dollar Index to surge to the next relevant resistance at 100.00.
Super Thursday’s Sterling selloff bruised the GBP bulls considerably, as a dovish BoE renewed the fears of a potential economic slowdown within the UK economy. As expectations fade that the BoE will raise UK rates in the near time, the GBP will be left vulnerable and this will be reflected in the GBPUSD. This pair hit the 1.5200 target which was discussed in yesterday’s report, and a strong NFP today may result in the GBPUSD declining to the next relevant support at 1.5150.
Touching on Gold, this precious metal has declined for four consecutive days as speculations mount that the Fed may act in 2015. Its role as a safe haven investment slowly wanes, and Dollar strength continues to obstruct any attempt for a bounce back. This precious metal is technically bearish and with prices showing no signs recovery, there may be a further decline to the 1100.00 support.
The GBPNZD trades in a very wide range. The pair is in the process of turning technically bullish on the daily timeframe with a breakout above the 2.34 resistance acting as a confirmation. The next relevant resistance above 2.340 is 2.4000.
The Dollar Index is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. The next relevant resistance is at 100.00.
The GBPCAD is in the process of turning technically bearish on the daily timeframe. A breakdown below the 1.9800 support may open a path to the next relevant support at 1.9500.
The EURAUD is technically bearish on the daily timeframe. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. A breakdown below the 1.5200 support may open a path to the next relevant support at 1.5000.
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