Forex Signals Brief for August 14: Can Data Save The EUR/USD?
Rowan Crosby • 2 min read
It was more of the same on forex markets yesterday, as fears over the emerging markets and the Turkish economy have kept the safe haven currencies bid up.
The USD continues to lead the way as the go-to currency of choice, however, the traditional risk-off plays of the CHF and JPY also saw plenty of buying. In what has been a very interesting trade, gold simply hasn’t had much buying at all. Generally, the gold bugs are up and about when any type of crisis hits on the world stage. This time it seems gold is getting pushed lower like many of the other commodities. But keep an eye out for a retrace which can often happen.
On Tuesday, we start to get going on the economic data for the week. After what was a slow start yesterday, we have plenty of key data points out of Europe led by German GDP, Eurozone GDP and ZEW as well as plenty of CPI data.
Sometimes, the days that are filled with data make it difficult for a trend to get going. It does, however, bring in the volume.
The EUR/USD has been particularly weak and is currently testing the 1.1400 level. Some strong data points will be needed to turn things around and if we don’t get some positive news, we might be in for more of the same.
Forex Signal Update
The week has started with plenty of action and the FX Leaders Team have been in the thick of it. The guys grabbed three winners from five trades with the safe-haven assets clearly being in-play.
Silver – TWe haven’t had a signal in silver in some time and this will be one to watch closely this session. Silver is highly correlated to gold and the commodity sector so further weakness on Tuesday will be another chance to be a seller if there’s some follow through.
DAX – The equity space has fallen away sharply across the board thanks to emerging market fears. Keep watching the DAX to the downside.
Bitcoin – Active Signal
Bitcoin has just taken out $6,000 and is having a big test of the level. If we hold and the offers stack up then I suspect we are going to see some serious selling in the next day or two.
USD/JPY – Active Signal
The safe-havens have been busy thanks to the risk-off tone in the markets at the moment. The JPY has been running up along with the CHF and I suspect there will be more ahead. We can at times cop a day two retrace, so that’s something to watch for as Europe opens.