Interesting start to the day as the sterling crashed about 6% in a matter of seconds. Gold continues its plunge and oil remains on a rally. More on today’s list of daily Forex news and trade opportunities.
6th October, AtoZForex – Looking at the list of daily Forex news, we also have the all-important non-farm payroll report due today.
#1 Sterling crashes on fat finger error
Arguably the hottest topic for traders this morning is the flash crash on the pound sterling. The currency dipped about 6% in less than a minute, only to recover about 5% in the following minutes. It is speculated to have been triggered by a “fat finger error” following comments of a “hard Brexit” from French President Francois Hollande.
#2 US Unemployment Claims dips to lowest since 1973 ahead of NFP
The jobless claims from the US showed an even more positive picture of the economy as employers show a greater unwillingness to fire workers amid a tightening labor market. The dollar rallied on the back of this report as traders now await the NFP report today.
#3 Fed Vice Chair Fischer says Fed needs help to hike
According to the Federal Reserve (Fed) Vice Chairman Stanley Fischer, the proof that the natural interest rate has dropped to low levels could signal the stagnation of the economy in the low-growth track that could prove hard to avoid. Hence, he is worried about the shifts in world savings and investment models that may have dragged down the natural rate could “prove to be quite persistent…We could be stuck in a new longer-run equilibrium characterized by sluggish growth.”
#4 All eyes on Non-farm payroll
The US Non-Farm Employment change is expected to show 171k job additions. An improvement from 151k reported last month. The unemployment rate is forecast to remain at 4.9%. However, the average hourly earnings m/m is forecast to improve to 0.2%. If the report comes this upbeat, then we are likely going to see some dollar strength, considering that this may mean the Fed will finally raise rates for the first time this year in their next meeting.
Opportunity: Sell gold on positive NFP
#5 Canada data
Today, we have the employment change and unemployment rate data due for release. Forecast to show an 8.1k change and 7.0% respectively. The Canadian dollar would also be driven by moves in the oil markets this week as markets try to fully discern the effect of OPEC’s latest decision.
#6 Snap Inc. IPO coming
The social media company famous for their social network snapchat is planning an IPO which is likely to come in March, which would is likely to put the value of the company at $25 billion.
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