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Daily Market Review – 8/07/16

Global investors are entering a big day of trading this morning. The Nikkei has declined in early trading on Friday and the FX markets have seen the GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More and EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More taken lower again the last twelve hours. Yesterday’s trading in the FX market showed that both Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More and the Single Currency The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More had the ability to stay above support When investors and traders use the term support When investors and traders use the term support When investors and traders use the term support, or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More levels, but they may continue to face challenges as technical The use of the term technical The use of the term technical The use of the term technical in trading usually refers to a variety of methods in which a trader or... More in trading usually refers to a variety of methods in which a trader or... More in trading usually refers to a variety of methods in which a trader or... More traders seek opportunities. The JPY The official currency of Japan is the JPY The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen to investors and t... More to investors and t... More to investors and t... More which is also knows as the Japanese Yen to investors and t... More and USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More have both found safe haven buying.

The U.S. will release the Non-Farm Employment Change numbers today. Yesterday’s ADP report showed an increase in the amount of new jobs that have created, but the report was not a huge jump upwards. Other American data continues to show challenging aspects for the U.S. economy. Factory Orders earlier this week and manufacturing numbers continue to highlight that the U.S. is not achieving the growth that it would like to attain on a regular basis.

Trade Balance numbers will come from Germany and the U.K. this morning. Data from Germany has shown troubling signs of a slowdown. U.K. data while beating estimates yesterday via the Manufacturing Production numbers is still lackluster. Both Europe and the U.K. have been struggling in an attempt to achieve growth like its counterparts in America and Asia.

The effects of the Brexit have been widely discussed by investors and analysts, but the economic activity within both the E.U. and U.K. were under plenty of pressure well before the outcome of the U.K. vote and not everything happening in the markets is about Brexit. Trading on Indices in Europe will likely be cautious today. The banking sector is under the microscope with Italian, German and British banks all getting plenty of attention with low valuations which are making its clients and shareholders nervous. It appears the FTSE may also be in for a day of rather cautious trading.

While some analysts are predicting that this jobs report will be better than the past couple of months, unless the amount of jobs added is spectacular the report will not have a huge impact on current market sentiment. Traders are looking at other uncertainties that are putting pressure on many assets Can be stocks, commodities, indexes or Forex currency pairs. More , while making risk adverse assets Can be stocks, commodities, indexes or Forex currency pairs. More look better. The Federal Reserve The Federal Reserve The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More ... More is the Central Bank of the United States of America and sets the monetary policy... More is the Central Bank of the United States of America and sets the monetary policy... More is in no position to raise interest rates at this juncture with so risk events on the horizon. Yes, the Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More can always raise rates unexpectedly, but its cautious nature the past year has not shown any signs of suddenly changing.

Gold has seen some selling the past day with profit taking perhaps being the culprit. Traders may look at the precious metal as an opportunity for speculative positions today. With so many investors continuing to show signs of fragile market sentiment it may prove interesting to test Gold’s capability to reverse. With so much uncertainty existing in current market conditions it stands to reason that Gold may still have reasons to go higher in the near term. On the other hand, Crude Oil has also been under pressure and this has been a sustained short-term trend. If market psychology continues to be negative regarding economic outlook, Brent Crude and WTI Refers to West Texas Intermediate Refers to West Texas Intermediate Refers to West Texas Intermediate which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More will continue to offer traders the ability to look for downward momentum.

Going into the weekend, investors will have to position themselves based on their short-term outlooks. While it is a natural tendency to lean towards optimism, markets may find that risk appetite is not exuberant as investors prepare themselves for a couple of days of rest.

GBP/USD chart this morning approximately 4:30 GMT, 8 July 2016

GBP/USD chart this morning approximately 4:30 GMT, 8 July 2016