Forex Signals Brief for Oct 29: Can US Employment Save Markets?
Rowan Crosby • 2 min read
World stock markets will be in focus this week, thanks to the recent big sell-off and increased levels of volatility. While the USD remains upbeat, we have the monthly jobs report on Friday, which is sure to get things moving.
Late last week, we saw a better than anticipated US GDP figure, coming in at 3.5%. This was higher than expectations at 3.2%, however a little shy of the strong result we saw in Q2, which was 4.2%. That has kept the USD relatively firm.
The USD has been the leader of the pack recently and it has been dictating the direction of the majors. This week, attention will once again be on the US, given the state of worldwide stock markets and the fact that Wall Street is leading the charge lower.
At the same time, arguably the most important data release we have, US employment is set to be released on Friday. We are looking at an expectation of 191K new jobs to have been created last month, which is ahead of the number we saw previously. Anything upward of 200K, will likely spark a big rally in the USD and put even more pressure on the majors.
Forex Signal Update
The FX Leaders Team had a massive day on Friday, grabbing six straight winners to round out the week. That took the weekly tally to 17 and 7 in what was a strong performance.
DAX – The DAX has been under pressure ever since we cracked key support at 11400. If buyers can push price back above that level, we might be in for a bit of a snapback.
NZD/USD – Active Signal
The Kiwi has bounced a touch and that was a good opportunity for a long signal. The USD slowed in what has been a strong uptrend. I would expect that to continue and along with weakness in the NZD and this mini downtrend, I feel this move has a good chance of continuing.
Bitcoin – Pending Signal
Bitcoin has been in a tight range and volatility is clearly contracting. What we know is that periods of tight consolidation often lead to big moves in either direction, so if we break this range it might be worth looking to go with the momentum on the breakout.