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Minimal reaction to NFP announcement

Article by ForexTime

I think most spectators who are watching the markets are wondering whether investors are sleeping on the job after the financial markets failed to budge following the Non-Farm Payroll data from the United States moments ago. The market reaction was muted in the moments following the news that the United States created another 178,000 jobs to its economy during the month of November, and it appears that everyone is focusing on a US interest rate rise in a couple of weeks that everyone sees as a “done deal”.

I think it goes some distance towards displaying what an unpredictable year we have experienced in 2016 when expectations that the Federal Reserve will raise US interest rates reach 100%. I have never seen such confidence in the Federal Reserve before, and there will be another round of intense volatility across the financial markets if Federal Reserve Chair Janet Yellen refuses to pull the trigger later this month.

With expectations so confident that the Federal Reserve will raise US interest rates in December and the US stock markets reaching repeated record highs since Donald Trump won the election, there is no reason for the Federal Reserve to vote against and delay raising US interest rates.

Moving away from the United States and the USD, the other major talking point over the past 24 hours has been the recovery in the British Pound since a UK politician expressed that it is possible that the United Kingdom could pay to retain access to the EU-single market once the UK finally exits the European Union. Obviously such claims will be contradicted elsewhere, but this has allowed the British Pound to recover against the Dollar with the GBPUSD climbing towards its highest level since the famous “flash crash” just under two months ago.

Expectations over the longer-term remain in place that the British Pound is still going to come under further selling pressure with the EU referendum uncertainty continuing to hang over its head, and it will be interesting to see whether traders jump on another potential sell-on rally opportunity.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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