Non Farm Payrolls Non Farm Payrolls GBP/EUR

The Pound rebounded strongly after Theresa May’s speech mentioned the involvement of Parliament in the process of Brexit.

The GBP/EUR pair is showing signs of topping, and with a possible topping pattern forming may be ripe for a correction, however, more downside is required to confirm.

The Bank of England’s Rate Meeting as well as Federal Reserve’s FOMC are the major events on the economic calendar in the week ahead.

The GBP/EUR pair may reach the important 1.2000 handle as Sterling benefits from talk of ‘Soft Brexit’ - although the European Central Bank rate meeting could provide volatility in either direction.

The lock-step moves between the Dollar and Pound have meant both have fallen back against the Euro in the wake of the US employment release.

GBP/EUR is set to end 2016 at 1.16 but then rise to 1.21 by mid-2017, argues Lloyds’ Mahadevan.

The GBP/EUR had been threatening to break lower, however, data showing resilient Business Investment and GDP have helped support the pair.

The pound to euro pair is steadily pushing higher towards our targets at 1.1900 and 1.2000, and although it is looking a little overbought, the uptrend remains intact and likely to extend following a pause.

GBP/EUR is in a short-term uptrend which in the absence of bearish indicators is likely to extend, with 1.1800 and 1.2000 as possible upside targets.

The US Dollar is outperforming its G10 rivals ahead of the month’s most important economic data release out of the US.

Stocks have soared and the dollar has fallen after August payrolls undershot expectations.

The US Dollar’s nascent recovery could hit the buffers on Friday should the prophecies of a leading global investment bank be proven true.

The GBP to USD exchange rate could see volatility spike when the US jobs report and wage data is released at 13:30 BST.

June’s stellar jobs report showed a massive rebound in payrolls -  so why aren’t markets pricing in a rise in the probability of the Federal Reserve increasing interest rates?