Forex Signals Brief for June 4: Can Politics Derail the US Economy?
Rowan Crosby • 2 min read
Last week ended on a strong note with the US economy getting back on track, which boosted markets. US employment data was strong across the board. That added to the recent good economic news that we’ve been seeing.
However, it is the political front that appears to be the one that can derail stock markets, the USD, and the Euro. That was clearly in focus last week after the Italian political crisis threw a huge curveball.
That was then followed by more trade wars, with the US taking aim at steel and aluminium from the EU, Canada, and Mexico. This really raises questions about whether or not these tariffs will ultimately stunt growth. In turn, leading to lower inflation and lower interest rates.
The week ahead is a little lighter on economic data than we’ve previously seen. However, the AUD, in particular, will be busy, along with the GBP and CAD. Be sure to check out Arslan’s weekly preview here, with all the major events.
Forex Signal Update
Markets might not have liked all the political and geopolitical events that were taking place, but it was a real boom time for traders.
The FX Leaders Team walked away with 19 winning signals and only 7 losers for a really strong strike rate of 73%. That included a run of 8 winning signals in a row.
Gold – The 1290 region continues to offer support in Gold, and ranges have been quite tight for the most part.
Bitcoin – It’s been a poor run in the digital currencies recently, however, Bitcoin has managed to hold up at $7,000 and find some buying interest.
USD/JPY – Active Signal
The USD/JPY has incredibly active over the last week, thanks to the geopolitics that spooked markets. The strong USD has also helped the uptrend here. We are riding the positive employment figures from Friday. There is a little bit of resistance overhead. If we crack that, we will run into out take profit target at 109.86.