Forex Signals Brief for Sep 27: Focus Turns to GDP

Markets have been focusing heavily on the September meeting of the FOMC and sure enough, we got the rate hike we all expected. The real takeaway appears to be that the Fed is prepared to stay the course and keep their tightening monetary policy going forward into 2019 and 2020.

For the most part, equities didn’t like the news and they sold off late in the day. The USD was up and down throughout the session and as yet we haven’t really got a clear direction.

Now that the FOMC is out of the way, our attention can turn to other things. Today that looks likely to be US GDP.

We recently saw this number upgraded to 4.2% and all things going to plan we will likely see this remain the same. There is still a level of confidence around the US economy as the benefits form the things like tax cuts and increasing employment are far outweighing the negatives such as the US-China trade tariffs.

Any weakness today in the GDP print will likely weight heavily on equities in particular.

Forex Signal Update

The FX Leaders Team when three and two, building on the strong week.

DAX – The Dax is still consolidating as are a number of worldwide equity markets at the moment. The momentum is still to the upside though.

Gold – Active Signal

Gold fell away sharply from the $1200 level and out signal is now looking really strong. Gold and gold stocks had a rough day as the FOMC was effectively priced in. However, our signal is looking strong.

Bitcoin – Active Signal

Bitcoin is still below $6,800 resistance but we might just have put in a higher low around the $6,350 level. This becomes important if we can manage to hold it as it gives us a bit more of a bullish bias on the back of the Tokyo Whale headlines this week.