Forex Signals Brief for Dec 11: More US-China Trade Talks

US markets managed to find some buying yesterday and that might be helped by some small progress getting made on the trade front.

Chinese Vice Premier Liu He spoke with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer today, to discuss the next steps forward in the process. Markets liked the news early on although further details are scarce.

At the same time, all the attention will again be on the GBP/USD after the big support level dropped on the back of a delayed Brexit vote from the UK PM.

Today we have US PPI, which is an important measure of inflation for the Fed, as well as UK employment data and German ZEW economic sentiment.

Forex Signal Update

The FX Leaders Team finished with two winners from three trades in what was a positive but quiet start to the trading week.

EUR/GBP – This pair has ripped higher on the back of the Brexit news. We are in-play at the moment so watch how this one opens.

Gold – Active Signal

Risk-on came back into vogue a touch yesterday as equities rallied off their lows. That helped gold pull back a little towards what is resistance turned support. That might be the big test for this signal.

AUD/USD – Active Signal

The trade talks news has helped lift the AUD/USD a touch and we are back above the 0.7200 mark which is good news for this signal.

Cryptocurrency Update

Bitcoin has softened in the last 24 hours and is now back below the crucial $3,500 level.

This time last year we were trading around the $18,000 dollar mark which is a nice reflection of where we are currently at.

Given the continued selling pressure on bounces, I am still looking for a move to the downside and into $3,000. This looks like we are seeing sellers at each turn.