The FOMC in Focus

Forex Signals Brief for Nov 8: Markets Look to the FOMC

Posted Thursday, November 8, 2018 by
Rowan Crosby • 2 min read

Now that the midterm elections are out of the way, markets can go back to focusing on the data for the remainder of the week. The good news is they don’t have to wait long as we have the FOMC statement lined up for the US session.

If you recall, we’ve recently had an interest rate hike in the US and there is one more that is believed to be happening in December. Along with two more in 2019.

That makes the November meeting of the FOMC potentially a quiet one. However, investors can continue to look to the statement, to gain any insights from what might lie ahead.

The last FOMC minutes revealed a hawkish tone and it will be interesting to see if that remains the case, against a backdrop of the midterm elections and the ongoing uncertainty of China.

Elsewhere, top-tier data is again thin, so we could be in for a quiet time given the action of yesterday.

 

Forex Signal Update

The FX Leaders Team, found 4 winners from 5 signals yesterday with the only losing position coming in the EUR/USD, where we got shaken out in the USD fall when the midterms were still up for grabs.

GOLD – Gold has drifted a touch, thanks to a risk-on feel in markets yesterday. But overall the yellow metal held up well, suggesting there is still some strength there.

 

AUD/USD – Active Signal

The AUD/USD has rallied strongly in the last week, thanks to some positive data and a weak USD. We recently tested 0.7300, but are due for a pullback here after we failed at that level.

AUD/USD
AUD/USD – 240min.

 

EUR/USD – Active Signal

The EUR/USD spiked higher yesterday as the USD fell away during the early counting of the midterm election. If quickly retraced, but resistance turned support below, might hold for a quick long position.

EUR/USD
EUR/USD – 240min.

 

Cryptocurrency Update

Bitcoin and the other major cryptocurrencies have been very quiet in recent weeks. The low level of volatility is actually quite surprising given the history of the fledgeling industry.

That said on the longer-term chart price does look bearish. It is making lower highs as it moves towards the $6,000 level. I wouldn’t be surprised to see a big spike through at some point.

The short-term levels to watch in BTC are $6,800 to the upside and $6,150 to the downside.

BTC
BTC – Daily.
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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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