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Daily Report

Markets Eye Strong NFP05 October 2018 by Dave Evans

Morning Report: 07.00 London

The dollar remains strong this morning, with markets expecting a strong set of NFP numbers. The Australian dollar remains weak, falling further below the 0.7100 level.

The EUR/USD recovered half of yesterday’s losses, but is back on the losing track this morning. The GBP/USD rallied sharply back above the 1.3000 level yesterday, with this morning’s selling set to challenge support again.

The USD/CAD has recovered the October gap to recover the 1.2900 level. The USD/CHF is also continuing its push towards parity, with 0.9950 the next target.

Yen pairs remain on the back foot, with the USD/JPY reversing steadily yesterday. The AUD/JPY remains weak, selling off for the last four days. The GBP/JPY and EUR/JPY also remain weak.

Coming up today

The day’s big ticket is US non-farm employment change at 13.30, released alongside unemployment rates and average hourly earnings.

Canadian employment change, unemployment rate and trade balance are released at the same time.

Trade Idea

The Aussie remains weak, with the yen holding its own against most currencies with the exception of the dollar.

October 5th 2018: Markets Eye Strong NFP

A good way to play this is a LOWER trade predicting that the AUD/JPY will close below 113.50 in 14 days for a potential return of 125%.

October 5th 2018: Markets Eye Strong NFP