Forex Signals Brief for Oct 18: Retail Sales in Focus for the Pound
Rowan Crosby • 2 min read
The pound is clearly still being driven by the outcome of the Brexit negotiations, but for the time being the attention will now turn to retail sales.
There is reason to believe there might be a slightly weaker number this month. The summer period has been strong for the UK but as we turn into the colder months sales can dry up. At the same time, we are also seeing pressure from higher costs such as oil that can have an impact on people’s spending. This should, therefore, be an interesting number today.
Aside from UK data, we will also have the Philly Fed later in the day. While markets will again be watching the plight of bond yields after yesterday’s hawkish tone from the FOMC continued to support the USD.
Forex Signal Update
The FX Leaders Team found 3 wins with only the 1 loss in what was a solid day of trading.
CAC – The CAC has been trading nicely off technical support and resistance. Price bounced nicely off support and is now pushing back into overhead resistance.
DAX – The German DAX has pulled back to resistance turned support and we will need to watch this level closely for a potential big move.
Gold – Pending Signal
Gold still hasn’t given back its gains on the back of the quick spike we saw recently. There might be a chance for some weakness here as price pulls back. If it cracks the recent low we might get a quick flush.
Bitcoin – Active Signal
Bitcoin spiked into $6,800 recently, but since that time has gone back into a tight range. Like we just saw, usually, this leads to another breakout. So we will be hoping that a break comes and the move is this time through overhead resistance that has been keeping this one tied down.