Yesterday’s news background unexpectedly caused high volatility. The Bank of England’s decision to leave the key interest rate the same and to increase the amount of purchased bonds was the major market driver.
Today is the trading day of the week. Obviously, today’s major report is Non-Farm Payrolls. Apart from having considerable weight, its impact on financial markets is intensified by the current economic situation in the world.
The USA’s unemployment data are also worth paying attention too. Taking into account the-day-before-yesterday’s stats on planned job cuts, the indicator may well show an increase contrary to all expectations.
Out of secondary data we can single out the UK’s PPI and Germany’s industrial output.
At the moment GBPUSD is being traded between 2 option barriers (1.5388 and 1.5474). Taking into account the potential of today’s reports, we can count on an increase in the expected volatility of GBPUSD. However, when buying option strategies, it is recommended to close all the trades right after the US labor market releases.
Provided by the Department of Options,
