Central Banks are in Focus

Forex Signals Brief for July 30: Central Banks on the Agenda

Posted Monday, July 30, 2018 by
Rowan Crosby • 2 min read

If you wanted an exciting week on forex markets, then this might just be the week for you. Central Banks take the stage as we have a host of key policy announcements that are set to get the majors moving. And that’s before a number of other big data events culminating in US employment on Friday.

The FOMC might well be the most watched event of the week, however, I suspect it won’t be the biggest market mover. While the FOMC is taking a path of steady rate hikes, it appears this won’t be the month for an increase.

The Bank of England (BOE) on the other hand, might be getting set for a hike of their own. Rates have been at a low 0.5% for some time now and the expectation is that we will be seeing a hike to 0.75%.

Similarly, the Bank of Japan is looking like it is getting ready to shake things up as well. As the speculators are telling us that they are trying to cut back their massive bond-buying program. Naturally, the JPY has been pushing higher over the last week or so and in some ways, this might be the biggest central bank announcement of all this week.

On the data front, US employment on Friday will make for a busy trading day, while there is a whole host of other important data points to be released. Monday is a little slow on the data front, but get ready for the week to rolling very quickly.

 

Forex Signal Update

The FX Leaders team finished the week on a positive note as we managed to find 14 winners and only the 11 losers. It was a tricky trading week and the boys did a great job. This one looks to be pretty big so keep watching for plenty of opportunities.

Gold – Gold continues to grind lower and so far the trendline is holding up nicely. Keep looking for more opportunities to the downside.

Bitcoin – Bitcoin managed to fight back from a fall below $8,000 and is looking strong. Could there be more upside ahead?

 

USD/JPY – Active Signal

It appears this is going to be a big week for the USD/JPY with both the dollar and the yen having market moving events. Both have been bullish, but the JPY has been outpacing the USD, making for USD/JPY weakness. If in fact, the BOJ does cut back on their bond-buying we can expect to see more downside from the USD/JPY.

Price has been rotating a bit in anticipation, so we will have to see if there is a little bit more weakness to help us tick over to our profit target.

USD/JPY
USD/JPY – 240 min.

GBP/USD – Pending Signal

The UK is looking at a rate hike for the first time in quite a while. And that is clearly bullish for the GBP/USD and a sign the economy is on the improve. Unfortunately for the GBP/USD, the Greenback and the US economy is going a little better than their colleagues from across the pond. So that means the downtrend is still in place for now.

We are perilously close to our TP here so I expect that to trigger any time.

GBP/USD
GBP/USD – 240 min.
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About the author

Rowan Crosby is our Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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