So far this week, the attention has clearly been focused on the US. We’ve had both the FOMC and midterm elections and now they’re out of the way, we can look to some of the other movers.
Today it appears that the GBP/USD is going to have a busy session. While the Brexit headlines have been driving the action for the last few weeks, we have a slew of economic data out that will be sure to keep the volume coming thick and fast.
The main figure of interest will be UK GDP. While we also get manufacturing production and some trade data – which is quite relevant given the Brexit sagas.
Meanwhile, back in the US, we can also look forward to PPI. This is an important metric that the Fed looks at, and given the hawkish tone at yesterday’s meeting of the FOMC, there might be some more buying ahead in the Greenback.
Forex Signal Update
The FX Leaders Team, found 2 winners from 5 signals yesterday with the majors and commodities in focus.
SPX – Active Signal
The SPX has bounced nicely off the lows, after the slide that we saw a few weeks ago. The run-up has now run into the first resistance area. We are looking for a quick pullback from this level.
NZD/USD – Active Signal
The NZD/USD has run up nicely this last week on some strong economic data and improving growth. This appears to be a nice long entry on the pullback. Our biggest concern has been the pop in the USD yesterday, making us worry that we don’t have enough wiggle room here.
Bitcoin and the other major cryptocurrencies have fallen away in trade on Thursday as the broader market sold down. There wasn’t really any fundamental news, but what is clear is that BTC is struggling to hold $6,500.
As mentioned yesterday, we are honing in on $6,000 and we are making a series of lower highs as we move towards it.
The short-term levels to watch in BTC are $6,500 to the upside and $6,150 to the downside.