RJO FuturesCast 11/3/2017 – Currencies

Good morning traders, John Caruso coming to youhere for the morning of November 3rd.

We just recently did get the Octoberunemployment number out this morning, we did see a little bit of a miss on theheadline number.

261,000 jobs created in October versus an expected310,000.

We did see wages slip as well a little bit, 2.

4percent from an expected 2.

7 percent.

However we did see a down tick in theunemployment rate and that's largely because the workforce is shrinking.

So on the surface here not a very good number.

They did revise the September number higher, so that is something to kind of take noteof.

Right now the US dollars fairly muted reaction.

The cash market is at 94 70 flatup 2 ticks right now, the euro is trading 116 70 down 19.

We still know that theFed is going to raise, as far as we know, as far as the the Fed Funds futuresare pricing, and the Fed is set to raise interest rates in December.

Right nowthey're pricing in about a 90 percent chance that we do get a quarter pointbump in D.

So we're watching that very closely.

I've got topside resistance inthe US dollar up around 95 20 and support down along 94.

So that's probablythe immediate term range that you want to manage when you're trading thecurrencies.

Looking at the British Pound, the British Pound got hammered yesterdayfrom top to bottom.

It was down over 259 points.

We did see, the Bank of England,they did raise interest rates however they did what we call a dovish rate hike.

They raised interest rates a quarter percentage point, however they've kind offorecasted that this is a one-off event and that this is not the beginning of aseries of interest rate hikes.

So British Pound didn't like that.

However,interesting enough, we did hold long term support.

The low in the pound yesterdaywas 130 53, I've got a support bar of 130 48 which is the old October swing low.

Sointeresting, we're gonna watch that level very carefully.

Lastly I'm gonna hit onthe Japanese yen.

The Japanese yen seems to be on some longer-term support,however it's it's having a hard time picking a direction at the moment.

The immediate term trend is still down, we're trading 8790 we are up slightlyversus the US dollar.

I do have longer-term support at 8750 soyou really want to watch that 8750 mark, if we close below there, it looks like we could extend lower on the Japanese yen.

However if we can stayabove 8750 I'd say for the next week that we could be seeing the beginning ofa turn, a bullish turn, in the Japanese yen.

So keep that in mind.

That's all Ihave for you, feel free to reach out to me at the trade desk we'll be around allday.


Source: Youtube

RJO FuturesCast 11/3/2017 - Currencies

RJO Futures Senior Market Strategist John Caruso discusses the currency futures markets. Unexpected results in the Jobs Report, and the British pound takes a massive hit. What will this mean for the currencies? To learn additional information about John and see more of his commentary, please visit: https://rjofutures.rjobrien.com/futures-brokers/john-caruso/