Forex Signals Brief for August 21: Trump to Dictate the Action
Rowan Crosby • 2 min read
The week got off to what can only be described as an interesting start, and once again it was US President Donald Trump that was wreaking havoc in worldwide markets.
Trump has taken issue with the fact that the US Federal Reserve is on a course of tightening their monetary policy. In his eyes that is pushing the USD higher and causing the US to be less competitive.
The President is also concerned with a number of other countries who he feels are manipulating their currencies lower. A lower currency is generally a good thing for an economy as the value you receive for your exports is higher.
Trump has been in the media airing his grievances and this has weighed on the USD, pushing it lower. Taking aim at new Fed boss Jerome Powell. It is an interesting week to do so ahead of the annual summit at Jackson Hole, where Powell will be giving his first speech as the number one man.
Looking at the economic calendar today, it is just about a bare as I can remember. So again there will be plenty of attention paid to Trump’s comments. We might just see more downside in the Greenback as a result, which will help boost the majors.
Forex Signal Update
The FX Leaders Team made a strong start to the week once again, and it was the commodities that were giving us plenty of opportunities. We had three wins from four trades, with gold and oil featuring heavily.
Silver – The precious metals have been bearish, but Silver has pulled back a touch. This should be a nice short entry for us.
CAC – The CAC had a strong day and has pulled back up towards resistance.
Bitcoin – Active Signal
Bitcoin was one of the more active trades yesterday as it continues to try and find some buying. While it did push higher, the bids didn’t step up and it fell away. As I’ve been saying I would like to see us crack resistance at $6,600 and that would give us a far more bullish feel. At the moment we are really just range bound.
DAX – Active Signal
The DAX fell away just after we opened this signal, but as of the close yesterday price had retraced back to breakeven. Equities were largely in the green on Monday led by a solid open on Wall Street.