Forex Signals Brief for August 28: The Markets Gain Confidence
Rowan Crosby • 2 min read
Forex markets started the week in busy fashion, despite a thin economic calendar. The trade deal between the US and Mexico helped lift confidence in the market, ironically a day before we get a measure of consumer confidence out of the US.
US equity markets rose strongly thanks to some positive sentiment flowing back into markets. While the Greenback fell below a key level, pushing the majors higher. The US-Mexico deal puts the ball firmly in the Canadian’s court as well as easing some of the fears around the emerging markets.
In terms of the economic calendar, the week remains rather thin. As mentioned the key release today is consumer confidence out of the US, which is expected to show a slight fall on the month. Ahead of the main number this week, which is US GDP tomorrow.
Keep an eye out for more headlines on trade coming out of the White House as this is making the newsflow a key focus for traders at the moment.
Forex Signal Update
The FX Leaders Team got off to a slow start to the week, with only the three signals. The boys finished one and two on the day. But get ready for more opportunity as the USD remains active.
Gold – Gold has jumped higher which was helped by the weak USD.
Silver – Silver has been firmer but at the moment trails gold which is leading the precious metals.
Bitcoin – Active Signal
Bitcoin looks to have found a bid and the buyers are once again doing their best to try and run this overhead resistance. $6,800 has been taken for now and the attention is on $7,000. We need to break through and hold for an extended period of time. Time is key here. We are back to breakeven on the trade which is promising.
DAX – Active Signal
News of the US-Mexico trade deal began filtering through early US time and that helped lift equities. The DAX was already strong thanks to German data and we have seen our signal push into the positive which is nice. Asian equities remain strong so we are hopeful of more follow through here as Europe opens.