Forex Preview: All Eyes on the NFP

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1. Forex Preview: All Eyes on the NFP

The Fed’s “promise” of lowering rates was based mainly on first the trade war – which has since subsided after the G20 result, though specifics are still unclear, and second, the labour market, where the Fed mainly looks at 3-month averages. This means that if today the NFP comes in strong today, it’s good news. If we have a strong NFP report this afternoon, global bourses could see some downside since the Fed will also have less pressure to cut interest rates, which could in turn also support the USD and help it recover some of its previous losses. *


2. USD Remains Supported by Strong NFP Forecasts

The dollar headed slightly higher today but investors held off on making big trades ahead of the closely-watched U.S. NFP report that could influence the course of Federal Reserve policy. Forecast for a solid NFP of 160K have kept the USD supported- at least for now – but everything will depend on the actual release at 12:30 GMT. The EUR is pretty much of a standstill with a tendency to the downside, after another disappointing set of factory orders in Germany encouraged bets that the European Central Bank will ease policy aggressively at its policy meeting later this month. The EUR/USD was last seen trading just below 1.270 level as of 8:30 GMT.**


3. Oil Prices Dip

Oil prices have recorded more losses today, after slumping yesterday on signs of lessening demand. Today, fresh worries over the state of the global economy outweighed elevated tensions in the Middle East that could disrupt supply routes and send prices higher. This indicates that we could expect the bear trend to continue next week.***


4. Gold Remains Supported, BTC Dips

Gold prices steadied on Friday but may still be on track for a seventh consecutive weekly gain, as the noble metal remains supported by concerns over the state of the global economy. Elsewhere,  BTC failed on the 12k yesterday and dropped below the 11k this morning also with first important support around the 10.5k where it confluences with the 20-day SMA.****


You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.


*FXStreet Jul 05, 2019 03:07 AM ET
**Reuters Jul 05, 2019 3:53 AM ET
***CNBC Jul 05, 2019 2:48 AM ET
****Bloomberg Jul 05, 2019 06:13 AM ET

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