Currency - GBP / US Dollar

All eyes are on today’s release of the US employment data for June. It has been brought forward to Thursday from the traditional slot of 1st Friday of the month owing to the US 4th July holiday break. That extra day of holiday will also make today a very lively one as US traders will only have the day to react to the employment report before scooting off for a long weekend. We are all hopeful that the data will show a slight improvement from last month and this will be significant as it will accompany a series of other positive US data releases. Ironically, if the numbers are good, the US Dollar will probably weaken. This is likely to happen as international investors take courage from the upturn in America and seek higher interest rate yields abroad. So much money is lodged in US Treasuries at the moment that, when they do this they sell those Treasury Certificates and subsequently sell US Dollars to move their funds overseas. So US Dollar sellers, be prepared or trade in advance just in case the forecasters are right and US Dollar buyers may want to place market orders to try to grab the highs in the almost inevitable volatility.