Non-Farm Payroll data disappoints
On Friday we witnessed US Non-Farm Payroll numbers coming in below expectations with only 20k jobs created. The US Dollar lost ground across the board, but recovered slightly towards the end of the day. The recovery could be attributed to the figures being slightly off due to the recent US Government shutdown. The month before has been particularly impressive with 311k jobs created which was very positive news for the US economy.
On Friday we also saw wage growth data, there was an increase by 0.4% landing at 3.4%. Unemployment fell to 3.8% from 4%. This positive data could increase the likelihood of a rate hike from the Federal Reserve which is good news for those selling US Dollars.
Pound to Dollar forecast
Brexit continues to be the key factor on Pound to Dollar rates. We had seen significant gains or Sterling following the diminishing chance of a no deal scenario and the higher probability of an extension. The vote tomorrow does have the power to influence the markets, but considering it is widely predicted that the deal will not be voted through Parliament I would not expect any great shakes, unless of course the deal is passed which would result in substantial Sterling strength.
If the deal does not go through we will then be a vote on whether MPs will be willing to leave the Eurozone without a deal. I doubt this will occur, which will result on a third vote on a possible extension, I think this is the likely outcome which could result in gains for the Pound.
Since the referendum currency rates have fluctuated more then 20 cents on GBP/USD exchange rates. There is the potential for high levels of volatility this week it would be a wise move to stay in touch with a broker this week. If you do not have a broker I will be happy to help.
If you let me know the details of your trade I will endeavor to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.
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