Today's NFP numbers were staggeringly poor relative to last month's actual and this month's expectation. This has led to the majors moving hard against the USD dips close to July lows. The unemployment rate, however, was able to decline from 5.4% to 5.2% and meet expectations.
We may continue to see a dollar sell-off in the short term as investors look at the bad NFP number. Although NFP was positive, it still was not anywhere near analysts expected it to be especially from last month's impressive number of jobs added. After taking a step back, unemployment was lower than last month and NFP was still positive; it is just at a slower rate than we were expecting this time around. More demand in the bond market is also negatively affecting the USD, so we might be seeing further downside in the short term.
GBPUSD on the 1D chart broke out of resistance and a falling long term trend line after NFP. This break, could send price higher to resistance around 1.39595 where there is a double top. New support formed around 1.38510.
EU looks promising as well, from a technical standpoint. Price is testing a previous high around 1.19046 on the daily chart and a break in this level could send the pair up to 1.19776.
UC broke under a rising trend line on the 1D chart and is coming down to support around 1.24784. Price is now back under its 50 and 200 Day moving averages and stuck in the consolidation zone again.
9/24/2021 The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%. Our outlook I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short […]
Let's look into the Bank of England's Monetary Policy Summary which took place on Thursday the 23rd of September, 2021. Quick Summary: BoE keeps interest rates unchanged at 0.10% BoE will maintain its asset purchasing target at £875B The vote to keep policy unchanged passed with a 7-2 vote The minutes of the MPC meeting […]
9/23/2021 The precious metal snapped three days of gains and tumbled back down to the support range from $1740s-1760s approximately. Gold is down -.56% on the day going into the opening of the NY session. Our outlook Gold will likely rise on the US indices falling, and is usually due to slowing economic growth. Because […]
9/21/2021 Bitcoin Update For the past month, Bitcoin went on a tear rising over 20% from the beginning of August. Recently, however, China and other risk-off factors have contributed to a 23% decline from the recent highs around $52,760. Now the most prominent crypto has touched these monthly lows which could be a potentially good […]