The positive sentiment on the back of both the US-China trade talks and the Brexit progress appears to have stalled at the moment, as markets have had a bit of a reality check.

The mood appeared strong to start the week, but that has quickly faded as doubts remain on both fronts. With that being the case, we will look to the fundamentals today in a bid to determine which direction markets will head.

The main event out early will be UK employment data, which will keep the GBP/USD in-play.  Interestingly, it appears a great time in the UK to find a job, with the unemployment rate at 3.8%, while wages are relatively strong.

The jobs report has not really been keeping up with the likes of the Brexit developments lately, so it will remain to be seen how the Pound responds. But I would expect some volatility and hence potential trade opportunities.

It’s also important to note that the EU Summit is only days away, while the first big Brexit deadline is creeping up in the coming weeks.

Forex Signal Update

The FX Leaders Team didn’t close any signals out on Monday, however, we do have a number of active positions headed into Tuesday trade. 

AUD/USD – Active Signal

The AUD/USD has been back and forth today, pushed lower by the dovish RBA minutes, then lifted by better than expected Chinese CPI. We are long here, hoping for another test of the key 0.6800 level.

Oil – Pending Signal

WTI fell away sharply yesterday as the excitement around the mini trade truce wore thin quickly. The $54 level dropped and that lead to some more downside. We are looking for a long position here and that might come on a break of that level, or more of a pullback into the range above $52.

Cryptocurrency Update

BTC has been struggling away in the last 24 hours and it looks like resistance at the $8,500-600 level is just a bit too strong at the moment.

Our US Analyst Shain has taken a good look at Bitcoin and why he feels another test of $8,000 might be on the cards in the next few days.