Forex Signals Brief for August 10: The Big Data Arrives
Rowan Crosby • 2 min read
Forex markets have had a slow week on the data front and fortunately, that is changing on Friday. Yesterday, we saw a disappointing PPI number from the US and that is going to be followed up today with CPI.
The CPI is more important to markets and will give us an insight into one of the key metrics the US Federal Reserve are watching. As a general rule central banks like to see inflation ticking over around the 2-3% mark. Which is where the US currently is at.
At the same time, we are also going to have some data out of the UK, with GDP set for release. The GBP/USD has been a mixed bag this week, popping up a touch on positive Brexit reports.
Finally out of Canada we have employment data, which will ensure the CAD is in-play at the start of the US session.
Forex Signal Update
The FX Leaders team had another relatively quiet day with only the three signals. For one win and two losses. It appears this has just been a quiet week, without too many big trends in forex pairs.
DAX – The German DAX continues to consolidate in a relatively tight range this week. We are looking to buy at support around the 12,480 level.
EUR/GBP – Active Signal
The EUR/GBP has been in a strong uptrend for some time. That’s been thanks to a weak GBP that has been trending lower as concerns around the Brexit deal continue to weigh. Yesterday there was some positive news on that front which popped the GBP higher. This was a good chance to enter a long position in the EUR/GBP amid the longer-term trend.
Bitcoin – Active Signal
Bitcoin has staged a little bit of a recovery, bouncing off the $6,200 level and pushing back above $6,500. There’s still plenty of work to go, but if we could see $6,800 again that would bring a lot of confidence back to the bulls.