Forex Signals Brief for Oct 2: Trade Setting the Agenda

Markets had a busy start to the week as news of the new NAFTA deal filtered through in Asian trade yesterday. By the end of the day, it was clear that US President Donald Trump had ticked yet another box and equity markets liked what they saw.

Overall it was the industrials that really lifted and that was reflected in the Dow putting in a strong session. They stand to benefit the most of all from a trade deal. At the same time, we saw big rallies in oil and natural gas and that is likely to continue to keep on flowing today

Whether you like him or now, it’s clear that Trump is getting things done and the Chinese are now being forced to take note.

Today the calendar is relatively quiet outside of construction PMI from the UK. However, Fed boss Jerome Powell will be speaking in the US session.

Late in the day, we have the weekly API crude inventory stocks and this will be important as oil hit the $75 level yesterday which is likely to offer up a fair bit of resistance.

Forex Signal Update

The FX Leaders Team put in a really strong start to the trading week, grabbing four winners and having only the single loss. The early news helped increase volumes and that gave us plenty of opportunities.

Oil – Oil has taken the $75 level and I suspect it is a huge couple of days ahead in this market. It will be tough to hold $75, but we do have inventory data today and tomorrow.

NZD/USD – Active Signal

The Kiwi didn’t move far yesterday but the signal is going our way. I would have hoped for a little more USD upside given the positive news on trade.

Bitcoin – Active Signal

Bitcoin appears to be tightening up and volatility is contracting. That means we might be in for a bit of a run. $6,800 resistance is still the big level to crack here.