Forex Signals Brief for Sep 4: BOC in Focus
Rowan Crosby • 2 min read
Markets are starting to get increasingly nervous by the day and today we get another central bank decision that will likely reiterate the theme of global economic worries.
Fresh from the RBA yesterday, who maintained their dovish tone, we will wait to hear from the BOC later today. While there is no expectation of a rate cut, there will be plenty of focus on comments from Governor Poloz and his team.
The probability of a rate cut by years end is pushing upward of 75% at the moment and any more dovish comments today will likely only increase those odds.
At the same time, the GBP/USD will be in focus for a third straight day. Turmoil on a political level has seen the Pound fall to near 3-year lows and that is making things interesting for the BOE and the new PM who appears to have lost control of Parliament already.
There is also some top tier data out today with services and the composite PMI from the UK, which will make for yet another busy session for traders of the Pound.
Forex Signal Update
The FX Leaders Team finished with 5 wins from 7 signals in the second strong day in a row. September is already showing plenty of volatility which is great for traders.
Gold – Pending Signal
GOLD continues its bullish run and is once again knocking on the door of another breakout through key resistance at $1550. The long-term trend is strong and we are looking for more opportunities to the long side.
USD/CAD – Pending Signal
The USD/CAD is really testing resistance at 1.3350. It’s being helped by a bullish USD but as mentioned, much will depend on today’s BOC. We are hunting an opportunity to the upside if it can break out.
BTC continues to show strength since it re-claimed the $10,000 level
Yesterday, my main focus was on the $10,500 level and so far the bulls are holding it above that point. Price traded as high as $10,750, before falling back a touch.
I’ve been hesitant to jump on the bull side just yet, but each day keeps showing strength. My main concern is that while the sector is strong, we are still in this longer term consolidation pattern, which isn’t really bullish or bearish as yet. So I will give it one more session to see if we get a clean break.