Daily Commentary

June 6, 2014 by

GBP/USD- After we saw cable surge on the upside yesterday on the back of sterling data, that being the interest rates remaining the same and as we saw dollar weaken on the back of the ECB press conference with the ECB slashing rates down to 0.15%. Although the rates being cut was already priced in. Cables momentum on the upside has slowed down and began to fall back down. This is due to the NFP and the unemployment rate data being released. The NFP reading coming out at 217k after an expected  218k, pretty close to the expected number. The unemployment rate turned out to come out better than expected at 6.3% and it being expected at 6.4%. With the big jump on the upside yesterday anyway, a small pull back was expected.

EUR/USD- Similar to cable, we have seen euro dollar ease off the throttle in terms of its move on the upside today, after we had the NFP reading out earlier, it hit highs of 1.36762 then bouncing straight off of this level and coming back down to 1.36204. A fair amount of movement, but generally a move on the downside. As I said about cable, after the big jump yesterday, a pull back did not come as too much of a surprise.

USD/CAD- A fair move on the upside has been displayed on dollar cad, after the fall on dollar cad yesterday, it has returned to around its price from where it started yesterday. As the dollar strengthens, this is what would have caused the move for the pair. Although we saw positive CAD data out, with the employment change coming out at 25.8k after an expected 25k, this didn’t seem to help the pair that much as the dollar has ultimately overpowered, although we start to see it come off slightly in recent hours.

GOLD- Gold can’t quite make its mind up on where it wants to go, so it seems to have just gone back to the previous congestion from yesterday. We saw it spike up to 1257.65 at 1:00, then straight back down all the way to 1245.79. Then once again another surge up, and it is now stalling around the 1252 mark. This is all due to the NFP reading coming out, people are quick to make decisions on what the data meant,  then opinions change and this is probably why we have seen all of this indecisive movement.