Whether it’s because of August holidays or the market focused on the NFP number today, it’s hard to say. I found trading to be slow this week but the currencies moved after a positive NFP number that beat expectations.
The market is now looking toward September for Chair Powell to talk about the Fed tapering bond purchases and any hint of interest rates increasing.
Today after the NFP release a short was taken in the GBPUSD risking 15 pips for a potential 42 pips to our daily target at 1.3859. The moves were uniform with the DXY moving strongly higher along with the U.S. 10 year yield.
Price moved lower through yesterday’s low but found a bottom just ahead of our target and we closed the trade.
Let’s hope next week is more active.
Good luck with your trading and enjoy the weekend!
