This week we’ve seen a number of Central Banks continue to trend of shifting their policy outlook to one that is more neutral or dovish. The ECB was the latest to change guidance and that comes on the back of the FOMC, BOC and RBA who have all shifted their stance.

That has made for some wild swings in forex markets recently and it looks like there might be one more day to go of the big moves, with today’s release of US employment data.

The jobs report from the US is predicted to show that there were 180K new jobs created last month. Overnight we saw the USD rally strongly and equity markets fall again, so there will be many investors hoping for a stronger than expected result.

We will also get a look at building permit data from the US and employment from Canada. So we should expect a few more fireworks to close out the trading week.

Forex Signal Update

The FX Leaders Team finished with 3 winners out of 4 trades as we slowly put together a solid week.

EUR/CHF – Active Signal

Our EUR/CHF signal has survived another day despite the massive sell-off in the EUR. The ECB came out with a very dovish update which sent the EUR/USD to new lows, so this one was lucky to survive. We are in need of a serious bounce though.

DAX – Active Signal

The DAX like many of the world indices has been struggling over the past week or so. After a big bull run since December, markets have started to top out a touch. We will need a strong US employment report here to hopefully drag markets (and our signal) higher.

Cryptocurrency Update

Bitcoin remains around the $3,800 level, however, we have seen more of a push higher overnight.

The main fundamental news of note is that Bitcoin transactions are back at 12-month highs. Ultimately if Bitcoin does have any utility to speak of, it is in its functionality for transactions.

Seeing an uptick and more usage is a real positive sign. Technically we will really need to see price take out a big level and so far that hasn’t happened, so we remain short and looking for some downside here.