Forex Signals Brief for Feb 7: BOE in Focus
Rowan Crosby • 1 min read
Markets are still busy at the moment and there is plenty of news around to keep volumes high. Today the attention will be on the BOE as they release their interest rate decision.
The BOE, like most central banks at the moment, are wanting to raise rates to a more ‘normal’ level, however, most are fighting against an environment where the economy is weak along with inflation.
In the UK, the backdrop of the looming Brexit is going to force the BOE to keep monetary policy as accommodative as it possibly can. Therefore we don’t expect any change, but as we’ve seen with the RBA and FED recently, comments around the decision will be closely watched and can move price more than an official change.
Elsewhere, we get German Industrial Production and Trade Balance along with US jobless claims.
Forex Signal Update
The FX Leaders Team finished with 4 winning signals from 6 trades with a focus on the majors, given a strong USD.
USD/CHF – Active Signal
The USD/CHF has been moving higher in line with the strong rally in the USD of recent times. We are long looking for another leg higher.
Oil – Pending Signal
Oil keeps pushing higher at the moment and is very much highly correlated to equities and overall risk assets at the moment. We are looking for a long entry on a pullback here.
Bitcoin continues to stay on its lows and is still below the $3,400 level. Again we are still waiting for a real news event or technical breakout to move price one way or another.
The fact that price simply cannot bounce is a sign of weakness and as mentioned, we are bearish until proven otherwise.