Friday was a huge day in world markets, as a strong employment report and a newly dovish Fed boss helped lift equities.

Investors will be looking for more of the same as risk-on has the potential to make a bit of a comeback.

This week we also have some more discussions on trade between China and the US, with reports today that the two leaders are again looking to have more talks.

We also get to see exactly what the US Federal Reserve has been thinking in regards to their monetary policy comments with the FED minutes and Jerome Powell speaking later in the week. US CPI will be released on Friday and could well cause some more late week volatility, particularly for the USD.

Forex Signal Update

The FX Leaders Team finished 13 and 5 in what was a really strong start to the trading year. Skerdian has updated the signals performance for the 2018 calendar year and it was another strong one for FX Leaders.

Oil – Pending Signal

Oil has rallied strongly as the risk-on plays have been seeing a bit of a bounce recently. There is also some hope around the US-China trade talks that are set to take place this week. That said, there is still significant resistance at $50 and that will likely present an opportunity to sell in WTI.

As we can see on the two charts below, both US oil (WTI) and UK oil (Brent) are in significant downtrends and we will be looking for opportunities to short both around key levels.

Cryptocurrency Update

Bitcoin has finally broken out above $4,000 although it is only early days and whether or not this push can hold is the real question.

On a short-term timeframe, it does appear that we are making a series of higher lows. However, the long-term trend can’t be ignored.

The previous highs have been $4,400 and $4,200 respectively, so these will need to break to change the longer-term trend for the time being.