GBPUSD 09-03-2018 Intra-day analysis.
Euro falls on Draghi's comments. Investors turn to U.S. Payrolls
Daily Forex Market Preview, 09/03/2018
The euro currency was seen posting strong losses on the day as the currency pair fell following Draghi’s comments in the press conference. The central bank had tweaked its language by removing the easing bias, which briefly led to some gains. However, in the press conference, Draghi’s reference to global trade wars sent the euro lower.
In the U.S. President Trump signed a bill that imposes tariffs on steel and aluminum imports. Canada and Mexico were exempt from the tariffs which comes into effect in 15 days.
Looking ahead, the nonfarm payrolls data will be coming out today which will be the major event risk. Economists forecast that the U.S. unemployment could fall further to 4.0% while the average hourly earnings are expected to rise at a slower pace of 0.2%. The monthly nonfarm employment change is expected to show a headline print of 205k.
Canada will also be releasing its monthly payrolls report today with the unemployment rate expected to hold steady at 5.9%.
GBPUSD 09-03-2018 Intra-day analysis
GBPUSD (1.3808): The British pound was seen trading weaker as the consolidation near the 1.3902 level held as resistance. Price action was seen edging lower on the day and could see further declines. The support level around 1.3611 – 1.3589 region could be tested in the medium term. However, price action will need to break down below the previous lows formed at 1.3734.