November 6, 2015: The AUD is the strongest. The GBP continues to tumble.
As the market awaits the US employment report, the market -with the exception of the GBP - is quiet. The strongest currency is the AUD, the weakest is the GBP. Below is a look at the major currencies and how they have performed against each other . For all of the currencies the biggest change is against the GBP. The GBP has fallen against all.
Looking at a simple measure of volatility, the trading range for all currencies except those that have GBP in their name is below the average over the last month (about 22-days). The EURUSD range is a minuscule 31 pips. That will change at 8:30 AM ET after the US employment report details are released.
What is driving the GBP? Small positives (see Ryan's post here) could not stop the negative from the BOEs more dovish statement yesterday. Technicals are also bearish for the GBP pairs.
Looking at the GBPUSD, the pair fell below swing lows between 1.5156-88 and is getting closer to next targets at 1.5106 and then 1.5084-89 where the 61.8% and lows from early May are found (see chart below).
The markets will change at 8:30 AM. US employment is due. The focus will swing from the GBP to the USD and what the Fed will do. Fasten your seat belts. PS Risk is increased. Be aware.
