Forex Signals Brief for Sep 2: Tariffs to Weigh on Markets
Rowan Crosby • 2 min read
The week appears to be starting on the back foot after a fresh round of tariffs has come into effect, sparking more worries in the tit-for-tat trade war.
The US slapped 15% tariffs on a number of Chinese goods on Sunday – including footwear, smart watches and flat-panel televisions. In response, China imposed new taxes on WTI.
The moves come on the back of a rough couple of weeks for global markets, as many economies sit on the verge of recession, while Central Banks look to continue with dovish monetary policy.
The one shinning light of recent times has been the state of the US jobs market. And this week, we will get another update, with the expectation of 159K new jobs to have been created last month.
The FOMC is sitting ready to act and we should still see an interest rate cut this month, regardless of the result. However, it is important to note that a strong result will help soften the blow.
Today the US and Canada are away for their Labor Day weekend, meaning liquidity could be thin and it could also make any falls more dramatic.
During the European session, there will be more Manufacturing PMI data out of both Germany and the UK, which will see the EUR/USD and GBP/USD come into focus early on.
Forex Signal Update
The FX Leaders Team finished with 10 wins from 15 signals in another strong week giving us a 66% win rate. The recent volatile conditions have really been helping us recently.
GBP/JPY – Pending Signal
The GBP/JPY has been weak recently, but we are seeing clear resistance at 130.00. A break above that level would open the door to some shorts being forced to cover and a move higher would likely be on the cards.
USD/CAD – Pending Signal
The USD/CAD has been getting pulled around by WTI lately and there will likely be more volatility ahead with the fresh tariffs. The resistance level at 1.3350 will also be big and a break of that could signal a sharp up move.
BTC remains below the $10,000 level after breaking to the downside late last week.
From a technical perspective we had seen this break down coming a mile away, based on the series of lower highs that were being made here.
A bounce and retest, followed by a failure at $10,000 would be a massive bear signal for me and would be a good opportunity to look for a re-entry.