Forex Signals Brief for Sep 9: ECB the Focus of the Week
Rowan Crosby • 2 min read
Markets will likely build into the week slowly as there is little by way of top-tier data to push prices around.
After a busy couple of weeks where volatility has been high, there is some chance of an early pause while traders get set for two massive central bank announcements.
This week all the focus is clearly on the ECB. It is widely expected that we will be seeing further 10bp cuts to the already negative deposit rates, while more importantly, there is a strong belief that the ECB will be rolling out a massive stimulus program.
That news could well see some big moves in the EUR/USD so it will be a trade to watch as the week unfolds.
Similarly, we have the FOMC next week. Again the expectation is for more rate cuts, and the case for those cuts was bolstered last week as US jobs slipped below analyst predictions.
It seems that central banks keep on cutting rates across the globe at the moment and that is adding to the already nervous sentiment.
Today, we get UK GDP and manufacturing production data, which will widely reflect chaotic conditions and sluggish growth. This news comes on the back of the wild week where we saw with UK PM Boris Johnson losing control of the parliament and struggling to make some kind of progress on Brexit.
So it could be another volatile week for the GBP/USD.
Forex Signal Update
The FX Leaders Team finished with 12 wins from 18 signals for a 66% strike rate in another strong week for the guys on the back of some good volatility.
USD/JPY – Active Signal
The USD/JPY looks to be forming a bit of a base on the longer-term charts and the 106 level has really held up well. We are long here looking for some more upside early in the week.
Gold – Pending Signal
GOLD has fallen away over the last few sessions as tensions between the US and China have eased off. Any deal still appears to be a long way off and I would think the odds of price falling under $1500 would be low at this point. So we are hunting a long signal above that level.
Another week and still BTC has not broken out of this range that we are in. Predicting when the break comes isn’t so much of a big issue, as being ready for when it does come.
So far, the $11,000 level and the top of the triangle have been too strong. Price has since pulled back to near $10,000 so we will watch and wait to see how it responds.
Remember, if the break comes there will be the potential for some really strong follow through.