Politics is on the Agenda

Forex Signals Brief for Nov 5: FOMC and Mid-Term Elections in Focus

Posted Monday, November 5, 2018 by
Rowan Crosby • 2 min read

Markets are in for a busy week ahead with a number of economic and political events to keep traders on their toes.

The biggest event of the week is arguably the FOMC interest rate decision. While there is expected to be no change in the month of November, we are staring down another hike in December and two more in 2019.

The last FOMC minutes gave a hawkish tone to the market and we are expecting more of the same at this meeting.

Meanwhile, the all-important midterm elections take place in the US. The midterm elections have the ability to shift the balance of power in Washington and will be a barometer for the Trump Presidency.

You only have to look to the last US election to see the impact it had on US equity markets and the large swings that preceded and followed, Trump’s election.

More immediately we have services PMI data out of the UK today and then ISM non-manufacturing PMI from the US as the major top-tier events for Monday.

 

Forex Signal Update

The FX Leaders Team, grabbed 5 winners from 6 signals on Friday, putting together a really strong week at the trading desk. Where the boys ended up with 19 wins and only 10 losses for a strike rate of 65%.

 

Nikkei – Pending Signal

The Japanese Nikkei continues to trade nicely around some of the key round number levels. At the moment, we are sitting right beneath the key 22,000 level. We’ve previously bounced right off support at 21,000.

If price can break and hold above the 22,000 level, this might be an opportunity to look for a long position.

Nikkei
Nikkei – 240min.

 

Cryptocurrency Update

It’s been a strong weekend for cryptocurrencies as most of the major players have been pushing higher. However, the star of the show has really been Bitcoin Cash. The Bitcoin offshoot has rallied more than 30%, ahead of a hard fork that is supported by Binance and Coinbase.

The hard fork will see Bitcoin Cash upgrade and holders will be rewarded with a new coin. The only concern is that holders might take some profits.

BTC is back at the $6,400 level where we have been trading for some time. As mentioned the main levels of interest are $6,800 to the upside and $6,150 to the downside.

BTC
BTC – 240min.
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About the author

Rowan Crosby is our Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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