Forex Signals Brief for Oct 12: Stock Markets Fall For a Second Day
Rowan Crosby • 2 min read
The slide in US stock markets appears to be continuing as markets saw red for a second day. While the extent of the losses was smaller, the momentum is clearly down at the moment.
A weaker than expected CPI print really hurt the fortunes of investors as the markets were trying to push higher.
The economic data is thin on Friday with only second-tier data available. It does feature CPI from Germany as the main event early with import and export data out in the US session.
Given the lack of data, the focus will clearly be on sentiment and how the markets respond to the two-day selling that we’ve seen.
Prices are still well off the February lows, so concerns around a crash appear unfounded at this stage. We might even see some covering as we head into the weekend.
Forex Signal Update
The FX Leaders Team finished the day four and two, in what has been a tricky week with most of the action being in stocks and commodities.
CAC – The CAC hasn’t been immune to the recent sell-off and had some red days on large gap downs. We are looking for more downside to come.
Gold – Pending Signal
Gold put in a big reversal yesterday and has run right up to the recent highs. Price has been grinding lower over the last year and this is the first sign of life we’ve seen. Perhaps finally the risk-off nature of gold is starting to interest investors once again.
Bitcoin – Active Signal
For the time being, yesterday’s sell-off in Bitcoin appears to be holding and we are setting up for a test of the $6,000 level. Let’s watch what happens as Europe opens as the action has been quiet in Asian trade.