Forex Signals Brief for Feb 4: Central Banks in Focus

Last week, much of the attention was on the FOMC and the fallout out from the dovish tone that has started to drift out of the FED. This week, the attention will be once again on the Central Banks, and it might well be a similar dovish storyline that we’ll be hearing about.

The RBA is first up on Tuesday and while they would like to see rates gradually increasing, fears of a property crash and an inflation rate below the target 2-3% are keeping them on the back foot.

Meanwhile, we’ll hear from the BOE on Thursday and it is a similar story there. While the members would like a gradual hiking of rates as well, they are currently hamstrung by the ongoing Brexit fiasco and the looming deadline.

Monday might well be a bit of a slower start with China away as well as a potential hangover in the US on the back of the Super Bowl on Sunday night.

Forex Signal Update

The FX Leaders Team finished with 12 winning signals from 22 trades to close out the week with a 54% win rate.

Gold – Active Signal

Gold has rallied strongly after it broke through 1300, but now we are seeing price top out a little. We are shot for a quick scalp.

USD/JPY – Active Signal

The USD/JPY has sold off everytime it has threatened the 110.00 level. We are short hoping that resistance will hold strong once again.

Cryptocurrency Update

Bitcoin continues to hold around the $3,400 level and there really has been very little in the way of real newsflow recently to move price in either direction.

The news of the BTC ETF, continues to linger, but getting it up is a long-shot at best. The major coins are mostly lower over the last few days and volatility is low.

I’m still watching the $3,000-200 area as a potential target, should we break from the area of consolidation that we are currently seeing.