After a week void of much market-moving information, the week ahead looks like it will have a few key data releases that should add to the current level of volatility.
Stocks will be in focus, as earnings season in the US kicked off in earnest on Friday. There are a number of big name companies set to report early on and this will shape how the indexes move.
In terms of data, one of the biggest numbers of the week will be out of China in the form of GDP. Experts are looking at YoY growth of 6.3% which is the lowest it has been in decades. The numbers haven’t been too pretty for China recently and a good result will likely boost risk assets such as the AUD/USD.
The EUR/USD has a few key data points out on Thursday, led by a slew of PMI releases. The health of German manufacturing will be a key talking point so be sure to look out for that.
While back to the US, and Retail Sales will likely be the big number that could impact the Greenback this week.
Elsewhere, it will be more of the same, with more Brexit headlines likely as well as all the very latest on the US-China talks and OPEC, to keep the respective markets on the edge of their seat.
Forex Signal Update
The FX Leaders Team finished the week with 7 winners from 17 positions in a week void of much new and data to move markets.
Gold – Active Signal
GOLD has fallen back through the 1300 level in what is very much bearish price action. With little by way of inflation worries, the USD has also faded, adding to the downtrend. We are short looking for some more downside here.
EUR/USD – Active Signal
The EUR/USD has run strongly on Friday and finally taken out the 1.1300 level. If it can hold there is hope of a revival, but I feel that we have pushed too far and I would be looking at a fall back under what is now support.
BTC is looking quote strong to open up the new trading week and it has really been the price action that is looking good.
As you can see on the charts, price really held the $5,000 level well and got bought up each time it fell away.
To me, that looks a sign of decent buying action and while we hold this level, the bulls are in control.