For all the positive headlines that were rolling out on trade and earnings on Monday, it appears the market wasn’t all that interested.
Yesterday markets sold off on the back of the headline that the US and China and making progress on a trade deal ahead of a summit in late March.
But it looks like it might have been a bit of a buy the rumour sell the fact moment as the profit takers came in on what has been a Fed-fueled rally since December.
Today the attention will be back on the key data points. The main ones of interest will be Services PMI out of the UK, New Homes Sales from the US and Ivey PMI from Canada.
Forex Signal Update
The FX Leaders Team finished with two straight winners in what was a quiet start to the week.
EUR/CHF – Active Signal
Our EUR/CHF signal took a turn for the worse yesterday and dumped hard. We’ve seen this before so all is not lost. We remain long here.
Oil – Pending Signal
Oil remains above the $56 handle and had a bit of a mixed session yesterday. Price bounced around and settled around where it began. We are still waiting on a long entry here.
Bitcoin has broken down from the $3,800 region where price has been coiling, which is a bit of a bearish sign as it means the sellers have stepped up first.
When price coils and volatility contracts for a period of time, that can often lead to an outsized move.
The FX Leaders Team are currently short and looking for a move lower.