Asian session traders took cues from their U.S. counterparts and pushed higher-yielding bets higher today.
Can London session traders extend their optimism?
Here are the major headlines from the last couple of hours:
Fresh Market Headlines & Economic Data:
- Prices drop for New Zealand’s sheep and beef farmers
- Australia faces ‘unprecedented’ economic hit from coronavirus: RBA minutes
- RBA will remove three-year target yield before raising cash rate
- Minutes: RBA on wait and see mode after recent policy changes
- Australia ‘disappointed’ by China barley tariffs
- Japan’s final industrial production data maintains -3.7% reading in February
- RBNZ doubles down on promise to keep OCR at 0.25% until March
- RBNZ not expanding quantative easing programme any time soon
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s labor market numbers at 6:00 am GMT
- Euro Zone’s ZEW economic sentiment at 9:00 am GMT
- Germany’s ZEW economic sentiment at 9:00 am GMT
What to Watch: GBP/USD
In a few hours the U.K. will print its labor market numbers for the month of April.
Word around is that the jobless rate could jump to 4.4%, while analysts see 150,000 jobless claimants for the month.As you can see, GBP/USD is trading near a broken channel support AND a trend line resistance on the 1-hour time frame.
If today’s numbers print way weaker than markets are expecting, then we could see GBP/USD complete a break-and-retest setup just under the 1.2250 area.
The pair’s 120-pip daily volatility means that the previous low near 1.2070 is juuuust within reach for the bears.
Meanwhile, pound bulls might want to wait for a break above the trend line, 100 and 200 SMAs, and the 1.2250 range support if they’re betting on GBP/USD gains.
Just make sure that you’re looking at a legit breakout and not a fakeout if you’re one of them pound bears!