Forex Signals Brief for Dec 12: CPI in Focus

There is still plenty of uncertainty in the air at the moment as investors are trying to digest a wide array of news from across the globe.

The US-China trade war continues to move forward in a positive direction with China agreeing to allow auto imports and President Trump suggesting that they will also be buying soybeans. This news comes on the back of a live TV clash between Trump and the Democrat leaders surrounding the Mexican border wall and the possibility of a Government Shutdown, which hurt equities yesterday.

Elsewhere the GBP/USD continues to get hammered on the back of the political troubles surrounding the Brexit and at the moment there is still no clear path forward.

Today’s main focus will be on CPI out of the US. While all the attention has been on geopolitical news, we can’t forget that that Fed is still looking at a rate hike in December and that the outlook for 2019 is now a lot more cloudy than it once was.

CPI is still the main focus for the Fed and we are expecting a monthly change of 0.2%.

Forex Signal Update

The FX Leaders Team finished with four straight winners with the majors being the clear focus for the day.

EUR/GBP – The EUR/GBP is still strong thanks to the GBP dump. We are waiting on a pullback here for a possible long entry.

Gold – Active Signal

Gold is currently consolidating between 1250 and support at 1240. The risk-off vibe has seen us holding higher, but the real test for the signal is whether we can break support and run.

AUD/USD – Active Signal

We had a win in the AUD/USD to the long side yesterday and we have now flipped to short as the USD has bounced nicely. We will need to see 0.7200 drop for this to run.

Cryptocurrency Update

Bitcoin has failed at the $3,500 level once again and we are now staring down another run of the lows.

The lows are sitting around $3,200 and I am targeting a break and test of $3,000. We’ve been making lower highs and the trend is to the downside.

Volatility is currently three times higher than what we’ve seen recently and I suspect that if we run the lows that will only increase.