US Market Wrap

US market participants were on holiday to start the week, so volumes were light and action limited.

The week ahead does still have plenty to look forward to for US traders, with the release of the FOMC minutes being the major focal point.

At the same time, we are expecting markets to keep doing what they’ve been doing and keep making record highs. And in the process keep shrugging off any negative concerns around the impact of the coronavirus.

Today’s Agenda

Today we will get some key data out of Europe with some particularly interesting jobs data to come out of the UK.

Today’s jobs data is for December and during that month we saw a wild ride in the UK. To start the month, there was still plenty of uncertainty around but by the end, Brexit was locked in and the in the eyes of many, the shackles had been released.

The real question for traders of the GBP/USD is just how much of the ‘Boris-Bounce’ will be priced in? In reality, there could be no significant improvements in the data.

But if that is the case, markets might shrug off the data and point to the fact that we have seen some meaningful change at a fundamental level that could well lift the economy going forward. 

At the same time, we also get German ZEW Sentiment. This release will impact the EUR/USD and what we might get is more of an idea about how the coronavirus is impacting sentiment.

Forex Signal Update

The FX Leaders Team closed one signal yesterday, in what was a quiet session with the US on holiday.

AUD/USD – Active Signal

The AUD/USD had a dovish RBA minutes out earlier today and it is now very red on the session. This is putting our signal in a very healthy position.

EUR/CHF – Active Signal

The EUR/CHF has been selling off again and we are now short to hedge off this longer-term trade. We have been shorting the EUR/USD as well all the way down.

Cryptocurrency Update

BTC has started the week slowly and the $10,000 level, is still holding for now.

The longer this level holds the more bearish we become, but as we’ve seen over the last week or so, it is a tricky trade at the moment.

For me, the $10,000 level, is simply a line in the sand. Above we look for long opportunities, below we are short. And that goes for the whole sector too.