The US might be away on Monday, but over the course of the week the trade wars between the US and China will likely flare once again.

On Friday the Chinese are due to increase tariffs on $60 billion of US imports in retaliation for the US hike. This is sure to add to the tension, despite the fact that these measures are far smaller, simply given the trade deficit with the US.

The main takeaway is simply that the trade wars are set to continue and could once again weigh heavily on markets.

With the US and UK both away today, data will be thin and action could well be limited. The main events of the week will be US GDP, Chinese Manufacturing PMI and the BOC Interest Rate Decision which will put the USD/CAD in the crosshairs once again.

Forex Signal Update

The FX Leaders Team finished with 13 wins from 18 trades in what was a really strong week. Unfortunately, both our AUD/USD and NZD/USD pairs both bounced which was almost unthinkable early in the week.

SPX – Pending Signal

The SPX has held the 2800 level a few times now and this is shaping up as another important week where it will likely be tested. With US GDP and more trade worries, if price can hold support, this is likely going to be a very bullish sign.

Oil – Pending Signal

Crude Oil has fallen away pretty sharply last week and price is now trading below the $60 level for the first time in a while. There is certainly an opportunity to look to buy the dip here so that might well be the plan early in the week, however, participants could be a bit low given the US holiday.

Cryptocurrency Update

BTC has done its usual trick and started breaking out over the weekend. The $9,000 resistance level is now clearly in sight after what was a really powerful move earlier today. Price has traded just beneath that level so far and has been steady above $8,800 so far in Asian trade.

$8,400 had been the most recent highs and price had tested and failed a few times. So when the technical break came, the move stated to get a bit more steam.

As I keep saying, this is a tough one to fade at the moment and for now the easiest play is to simply be a buyer above key resistance levels when they hold.