Forex Signals Brief for Aug 20: German PPI in Focus
Rowan Crosby • 2 min read
While markets wait on the big central bank announcements to come later in the week, there are still some interesting data points to look out for.
The one that has really caught my eye today is German PPI. There are a few reasons why this is an announcement worth paying attention to.
Only last week there were a fair few developments out of Germany which might very well have a big impact on the EUR/USD. One of which was a very weak GDP print that to me suggests a recession is not that far away.
The other was the response from the German Government, who will apparently ease budgetary restriction in a bid to stimulate the German economy. The EUR/USD is already pushing towards its lowest levels of the year as the Greenback has turned the corner to some extent.
While PPI might only be a second-tier release, it is an important metric for the ECB and the Government as inflation across Europe remains quite soft.
Elsewhere, there are some other second-tier releases, but much of the focus this week will be on the FOMC minutes, ECB minutes and of course Jackson Hole, where Fed boss Jerome Powell will be speaking on Friday.
Forex Signal Update
The FX Leaders Team finished with 2 wins from 2 signals to get the week started on a positive note after last weeks stellar performance that saw an 81% win rate.
GBP/USD – Pending Signal
The GBP/USD has once again failed at the 1.2200 level and things are starting to look very weak again. We are on the cusp of another leg lower, assuming the Greenback can hold up.
Gold – Pending Signal
GOLD has been a big bull trade of recent weeks but for the time being, things have turned over here. While the $1500 level holds as resistance, we are looking to the short side here for opportunities.
BTC looks like it might be starting to make another bull run of its own and is getting set to tackle the $11,000 level.
Price has been pushing higher since the Bakkt exchange announced that it will be launching physically-settled bitcoin futures on Sept. 23.
Technically, holding $10,000 was extremely bullish and this short-term bounce is expected. Whether price has the ability to follow through in any meaningful way right now is the real question though.