On Friday we saw a very strong Non Farm Payroll figure coming in at 292k against a previous figure of 252k. Naturally we saw the USD continue to rally with GBP/USD continuing its downward trend hitting new 52 week lows.
With the FED meeting towards the end of this month, all eyes will scrutinize any indication as to when the next rate hike is scheduled. Depending on how the FED members discuss the US economic situation and their stance on another rate hike; there is definitely scope for GBP to claw back some ground against the USD and other counter parts.
Friday saw UK trade balance figures released in line with forecast at -10.6B we did not see much movement in favour of the Pound. On Thursday this week the FOMC are due to meet with no indication to raise rates but will be interesting to see if there is any indication to what the members thoughts are regarding current global macro economic conditions. As low Oil prices and China’s stock market volatility filter through the global economy. We could see all 9 members voting for a non move on interest rates especially as we await to see how the Brexit scenario pans out.
Last week saw some strong figures for the Eurozone which kept EUR/USD at current levels despite downward pressures from a strong USD. Friday saw Eurozone data releases come out poor but these data releases were all of low significance data. This week is a quiet one for EUR data again with not too much in the way of significant data releases; this subsequently puts EUR at the mercy of other market pressures such at USD, Super Thursday and the current Oil crisis.
Friday saw the Shanghai Composite Index 1.05% higher at 1978.721. This comes after Chinese officials scrapped the controversial circuit breaker mechanism which was brought in to try to prevent price volatility but was infact excacerbating market panic and uncertainty.
There are no key announcements today