Forex Signals Brief for Jan 30: FOMC in Focus
Rowan Crosby • 2 min read
Markets may well have rallied strongly off their pre-Christmas lows, but there is still a level of concern in the air.
One of the biggest worries investors have been facing of recent times has been the impact that further US interest rate rises will have on both the US and global economies.
If you recall, Fed Boss Jerome Powell, recently took his foot off the accelerator and has started shifting his hawkish stance to a more neutral tone. This month’s meeting of the FOMC will be another opportunity to get some more insight into what exactly he and the other members are thinking about further rate hikes in 2019 and beyond.
Strong jobs growth has been a highlight of the US economy and we also get the unofficial ADP employment number out today ahead of the official non-farm payroll data on Friday.
Forex Signal Update
The FX Leaders Team finished yesterday with one winning signals and three in the red, with a focus on a number of the crosses.
USD/JPY – Active Signal
The USD/JPY has been consolidating below the 110.00 level since it bounced after the infamous flash crash. We are short looking for some more downside here.
GBP/USD – Pending Signal
The pound has been getting pushed around of recent times by near-daily Brexit news and there was more of the same yesterday. Overall, the pound has been in an uptrend, so this latest dip might be an opportunity to buy.
The Bitcoin sell-off continues as the price is now sitting on the recent lows around the $3,400 level and looking weak.
As mentioned yesterday, there is previous buying interest around the $3,000-200 area, so that will really be the big test for Bitcoin. Those calling an end to the Bitcoin bear market that has gripped it this past year will soon find out what the market is thinking.