Do you have any Pound Trades Running?

The Bank of England is going to rattle the cages of the Pound today at 10.00pm AEST so be aware if you have any Pound trades running.

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LTG GoldRock Reviews the Week Ahead: December 2nd 2013

There is likely only one piece of news the market will want to wait for this week and that is the US jobs report on Friday. Yes there are other news items marked "High" but nothing is higher than the US Non Farm Payrolls number. 

Interest rate movements are critically important to the direction of any currency and the world is watching to see if US interest rates continue to steadily move higher. I personally am tipping another interest rate cut for Australia in February or March unless the Aussie Dollar is 0.85c to the US. The weaker Aussie currency will more than likely ensure interest rates are kept on hold when the RBA meets for the last time on Tuesday however the economic data supports another rate cut in my view early in the New Year. 

But Friday's jobs number in the US is the one to watch and if 200,000 jobs or more were created last month then the Aussie Dollar will more than likely finish the week back at the lows of 2013.

Get the latest LTG GoldRock Reviews of the currency markets in the daily GoldRock Insider Report.

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- Behind the scenes we've been tweaking and modifying the LTG GoldRock Daily Order sheets to make them easier to use and also allow traders to re enter a trend if they only wish to trade in one fundamental direction. We'll be shortly releasing the new look Order Sheets in early December.

- Westpac released its latest consumer confidence figure yesterday which was once again up. It was interesting to note however that even though consumers seem to remain positive in Australia, businesses don't, clearly evident by this week’s poor business confidence data. I also noted that Westpac's leading economist Bill Evans still thinks the RBA will lower interest rates again in February. If the US Fed keeps the stimulus flowing (which it seems they will) I don't think the RBA will have any choice other than to drop rates once again. I think this could come in February.

- I did suggest in this report yesterday that you keep an eye on the GBP for a move back higher if the unemployment figures that were coming Wednesday were good. They were…and today we'll get Retail Sales which could also move the GBP to a new monthly high particularly against the US Dollar post Yellen's comments this morning.

LTG GOLDROCK REVIEWS by Andrew Barnett

No-one was expecting that US Jobs Data number! LTG GoldRock Reviews

204k jobs created in the USA in the month of October was a genuine surprise given most leading economists expected around the 125k new jobs last month. This result instantly sent the 10 Year US Treasury Yield higher to 2.75% and at the same time pushed the US Dollar higher. Both the Aussie and Kiwi Dollars fell a full cent on the news (100 pips) as traders on Friday considered a December taper rather than March 2014.

Of course one month of better than expected jobs data doesn't make a trend but it certainly will see traders continue to watch the US 10 Year Treasury Yield and any move higher will more than likely send the US Dollar higher also. When the Aussie Dollar and Kiwi Dollars were at their lowest this year the US 10 Year Treasury Yield was touching around 3%, so if it trends higher back to these levels you can expect to see the Aussie and Kiwi Dollars trend lower against it.

When learning to trade Forex it's important to look at the bigger picture and understand how the markets work. LTG GoldRock Reviews the Forex news daily in the GoldRock Insider Report by Andrew Barnett.