Forex Signals Brief for May 29: BOC Rate Decision Ahead - Forex News by FX Leaders

Forex Signals Brief for May 29: BOC Rate Decision Ahead

Posted Wednesday, May 29, 2019 by
Rowan Crosby • 2 min read

Today much of the focus will be on the BOC Interest Rate Decision as more and more pressure falls onto global central banks to cut rates.

Yesterday in the US, bond markets were strong with yields continuing to fall, suggesting there is some pressure on the FOMC and Jerome Powell to cut rates in the US.

While there is also pressure in Canada, the BOC is not likely to make any rash decisions and will likely leave rates on hold. The most recent guidance has been suggesting exactly that with the last update indicating they will remain patient while setting a very high bar to move rates from where they currently sit at 1.75%. So the USD/CAD might very well be waiting on a bit of a non-event today.

Elsewhere the EUR/USD will be closely watching today’s German employment figures as well as French CPI and GDP releases.

Forex Signal Update

The FX Leaders Team finished with two wins from five signals with plenty of action in the commodities.

Gold – Active Signal

GOLD has been falling over the last few months as speculation mounts that rates might fall and inflation still remains weak. However, price is still relatively range bound. We are long looking for a bit of a bounce here.

Gold
Gold – 240min.

GBP/USD – Active Signal

The GBP/USD has had a horror run this month and is not showing any signs of slowing down. On the back of PM May standing down and the never-ending Brexit saga, the Pound continues to get sold down. We are short and simply going with the trend here.

GBP/USD
GBP/USD -240min.

Cryptocurrency Update

BTC has been a little quiet in the last day or two and remains just below the $9,000 level.

As I mentioned earlier today, the current levels of volatility are the highest we have seen since 2018 when price was dropping sharply.

We will continue to watch the $9,000 level with interest as if price breaks the highs the door will be open for another leg higher. If price breaks down and falls below $8,000 that could well spell the end of this run.

BTC
BTC – 240min.
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of