Forex Signals Brief for Oct 10: Inflation in Focus on Wall Street
Rowan Crosby • 1 min read
Markets have been very much focused on the status of interest rates in the US and that looks like it will continue this week.
The rising yield on the US 10-year note and of course the FOMC hiking rates last month appears that it is starting to make some investors a little nervous about the potential for further economic growth.
That has been leading to some shaky days on US equity markets as investors try and look to the future and to where that growth might come from.
Today we get another important reading from the US by way of PPI. PPI goes hand-in-hand with CPI which comes out tomorrow. Both measures give us an idea of inflation. Let’s not forget the FED’s first job is to keep inflation under control, so what they look to do is hike rates if inflation is getting too high. So keep an eye on those two numbers today and tomorrow and what that might do to future interest rates.
Forex Signal Update
The FX Leaders Team finished the day one and four, with the majors being the main drag thanks to a reversal in the USD.
DAX – Pending Signal
The DAX is back testing support at the 11800 level for the second time in as many months. We think that this one might bounce and there does appear to be plenty of buying interest at these levels.
Bitcoin – Active Signal
Bitcoin is holding above the $6,500 level, however, we are in quite a tight range. I’m looking for another test of $6,800 shortly and hopefully, the slow grindy build up will be more conducive to a break and hold.