Pound and Euro Adjust Ahead of U.S. Employment Data
The first trading week of December has seen a corrective rise in major currency pairs. USD/JPY tested support at 149.00, EUR/USD strengthened above 1.0500, and GBP/USD is nearing key resistance at 1.2800. However, the situation could change dramatically in the coming hours. The release of the final U.S. employment report for the year might either bring dollar buyers back into the market, reviving its upward trend, or trigger a broad upward correction in the mentioned pairs.
GBP/USD
Technical analysis of GBP/USD suggests the potential for further growth, as a "V-shaped reversal" pattern is forming on the daily chart. In the coming trading sessions, the pair may strengthen toward 1.28701.2800 if the 1.26401.2620 zone continues to act as support.
Key events likely to impact GBP/USD include:
- 10:00 (GMT+3): UK Halifax House Price Index release
- 12:00 (GMT+3): UK New Car Registrations data
- 23:30 (GMT+3): CFTC Net Speculative GBP Positioning Report
USD/JPY
As anticipated, USD/JPY managed a correction toward 151.20. However, there is no clear resumption of the uptrend, and the pair may again decline toward 149.00.
The behavior of the pair around recent lows of 149.30148.60 will be crucial for determining its next trend. A rebound from this range could prompt another test of 151.00. Conversely, a break below December's low might trigger a fresh downward impulse toward 147.00146.00.
Key events for USD/JPY in the coming sessions include:
- 16:30 (GMT+3): U.S. Average Hourly Earnings data
- 16:30 (GMT+3): U.S. Non-Farm Payrolls release
- 18:00 (GMT+3): U.S. University of Michigan Inflation Expectations
Read more: https://fxopen.com/blog/en/pound-and-euro-adjust-ahead-of-u-s-employment-data/
Text source: Forex Trading Blog
