Markets have been positive so far this week, as optimism over the US-China trade talks continues to bubble in the background.
On Tuesday, President Trump suggested that he would be willing to push back the March 1 deadline, if there was reasonable progress being made, which is a positive all around.
Today, we will also be getting some top-tier data on the state of the US economy. Firstly we’ll get PPI which is a key inflation measure used by the Fed. The FOMC might have turned a little dovish recently, but they will still be watching this number closely, particular after the CPI result yesterday.
We’ll also get a look at retail sales and this is arguably the most important figure on the state of the retail sector as it includes the December holiday period, which is generally the busiest time of year.
Overall the US Dollar has been bullish of recent times as we can see in the chart below so going into the PPI data, this will be one to watch closely, given inflation is still weak. Out of Germany, we also have German GDP. With a weak Eurozone, have a strong German economy is a big boost.
Forex Signal Update
The FX Leaders Team finished with 1 winning signals from 1 trade, in what was a quiet session for us.
Oil – Pending Signal
Oil is still holding up above the $50 mark and pushed higher yesterday, despite a larger than expected build in inventories. While we hold onto the $50 level, we are bullish and looking for opportunities to the long side.
Bitcoin has continued to retrace is gains after running up to the $3,700 level from the quick price spike and we are still short in what was a good entry.
Price is consolidating around the $3,600 level and coiling tightly. There is little new newsflow and the main story of recent times is still the death of Quadriga’s CEO Gerald Cotten. However, that appeared to have little impact on price.
I’m still looking for a break below the $3,600 level in a meaningful way, so will continue to watch how this pullback develops.