Currency traders during the European session on Friday found an unusual calm during the decline of the GBP/USD pair. More broadly, that rate was unchanged, around 1.3550. At the same time, the EUR/USD cross showed a defensive stance, holding a tight range just below 1.1450. Market participants are eagerly anticipating the release of the May US Nonfarm Payrolls (NFP) data, scheduled for publication at 12:30 GMT, which could serve as a catalyst for future market movements.
The GBP/USD exchange rate continued to trade under light selling pressure, a safe-haven response from traders worried about the upcoming US non-farm payrolls report. The duo’s showings have especially drawn focus, as it has continued to “hold the red below 1.3550,” as per analysts.
The EUR/USD pair was seen consolidating. It continued to drift flat under the 1.1450 handle through European trading. The US Dollar is breaking to the bullish upside. It is apparently bouncing off of its recent bottom since April 22, set only yesterday.
Traders are taking new positions before the very important NFP report, which is set to give new trading impetus. The excitement generated by this key economic measure underscores its ability to move markets, especially with respect to the US Dollar.
“EUR/USD stays defensive near 1.1450 ahead of US NFP data” – www.fxstreet.com/currencies/eurusd
As traders look ahead to the pending release of NFP data next week, both GBP/USD and EUR/USD are on high alert as both pairs eye a potential breakthrough. That next report is likely to have a major influence on overall market trends. Most notably, it will impact their expectations of what employment figures mean for monetary policy.
Further, in the environment of stock trading, the hottest name was Tesla Inc. (TSLA) On Wednesday, the company’s shares jumped in price, closing well above $332. In late afternoon trading on Thursday, they were experiencing a significant sell-off, having dropped down to under $274. The stock plunged 17% in a single day, leaving investors scrambling to determine how to recoup their losses and recover from the bombshell drop.
These challenges TSLA successfully found a way to hold on to those weekly gains before this current downturn. TSLA’s spectacular rise serves as a great reminder of stock markets’ volatility—a key feature TSLA’s performance on the way up. This uncertainty can usually look a lot like what we see in currency trading.
“GBP/USD keeps the red near 1.3550, US Nonfarm Payrolls eyed” – www.fxstreet.com/currencies/gbpusd