‘We judge that expectations for a very strong non-farm payrolls and wages is very high so that the risk of disappointment is high.’ – Commonwealth Bank of Australia (based on Market Watch)
Pair’s Outlook
The Cable managed to retain its position on Thursday, as the lack of potential market movers contributed to relatively flat trade. Today everything depends on the US NFP data, a positive reading of which is to spark more bearish momentum and is likely to cause a drop below the immediate support , namely the monthly S2 and the lower Bollinger band. Consequently, the channel’s lower boundary around 1.20 might even be put to the test. Technical indicators also suggest the Sterling is to suffer another loss today, but in case the NFP data surprises with a weaker reading the 1.23 mark is expected to be the intraday ceiling.
Traders’ Sentiment
There are 67% of all open positions being long today, compared to 65% previously. The number of order to acquire the British Pound dropped over the day, namely from 61 to 53%.
