Forex Signals Brief for Oct 4: What Can Stop the USD Charge?
Rowan Crosby • 1 min read
It has been a wild 24 hours in forex markets after a big run in the USD really put the pressure on the majors. And there might very well be more to come.
The USD was strong all yesterday after we got better than anticipated jobs data from the ADP as well a big beat in ISM non-manufacturing PMI.
But the real story ended up being the ramp up in bond yields where we saw the yield on the US 10-year Treasury note rally 11 basis points to 3.18 per cent.
Remember, when we can get strong returns for low risk, assets like gold becoming less appealing and that’s the type of action we saw yesterday. Similarly strong yields are a precursor to a higher cash rate and it makes the USD more in demand.
The data on Thursday is a little thinner and we will get more jobs data with weekly US employment claims. While out of Canada, Ivey PMI is the top tier event, with Europe a little quiet.
Forex Signal Update
The FX Leaders Team finished two and two, in a day where there was plenty of downside in the majors.
Oil – Oil kept its bullish run going, shaking off an inventory build to take out the $76 level.
DAX – Active Signal
The DAX has been pulling back and it looks like there might be a little bounce on offer. We have support above our stop here so the probability looks decent.
Bitcoin – Active Signal
Bitcoin has spiked higher in Asian trade and we are now pushing $6,500. We need to break $6,800 still but so far so good.