Forex Signals Brief for Dec 20: BOE in Focus
Rowan Crosby • 2 min read
The week to date has been all about the FOMC and what might come of interest rates in the US. Now that we’ve seen the US hike rates it is now over to the UK where we will get both retail sales and the official interest rate decision from the BOE.
Brexit headlines continue to keep the GBP/USD under pressure and at this stage, we are still below the important support turned resistance level at 127.00.
The US markets won’t get any respite today either, as there will be weekly jobless claims data as well as the Philly Fed data.
The USD held up strongly despite talk of only two rate hikes in 2019 instead of three. I suspect we are going to have a big couple of days before the Christmas break so keep a close eye on all the action today.
Forex Signal Update
The FX Leaders Team had a quiet day finishing up two and one after markets got very active post-FOMC.
Gold – Active Signal
Gold has survived a push into the 1250 region and we are now easing back off towards support at 1240. This is another longer-term signal with a target at 1221.
USD/CHF – Active Signal
Risk-off is still the order of the day and there might be even more chances ahead as we move into the end of the trading week. As traders could potentially look for some safety ahead of the break.
Bitcoin bounced strongly off the lows recently and broke through $3,500 in convincing fashion. However, price wasn’t able to run up and test $4,000.
That is clearly the next major level so I will be watching the price action today to see if this is a new short-term high or not. If we start putting in a lower high, then there is a good chance of a retrace back to $3,500 and a test of support.