Markets continue to be somewhat directionless this week, as a lack of key data leaves sentiment as the main driver of price.
As a result, we’ve seen the SPX push up and down while the USD remains relatively steady.
There is little key data out of Europe today, as all the attention still remains focused on the ECB interest rate decision tomorrow and of course, if Mario Draghi is prepared to throw the kitchen sink at another QE program.
So today, the focus will likely fall back to the US, with PPI being the main number of interest. As yet, there is little to suggest producers are capitalising on the trade tariffs with China, as PPI remains sluggish.
An equally interesting WTI crude inventories report is also on the agenda today, with oil still trading below $60 per barrel, despite being well bid in recent times.
Forex Signal Update
The FX Leaders Team had another positive session yesterday, finishing with 2 wins from 3 signals and yet again it was the safe-havens that helped add to the bottom line.
EUR/USD – Active Signal
Our EUR/USD signal remains open as ranges have been relatively small ahead of the ECB interest rate decision tomorrow. I would still expect this one to be closed out prior to that release, but it is something to consider if volatility remains low today.
Oil – Active Signal
WTI has not been able to push through the $60 level in some time and as a result we are short keying off that price point as well as $58. There is a big inventory number due out today, which will add to the volatility significantly.
BTC looks like it is going to be testing the $10,000 support level in the coming 24 hours, in what is shaping up as make or break time.
Resistance at $11,000 has held up strongly for the time being and that means the bears have won the first round.
As I have been saying constantly, the break is coming, and as traders that’s what we need to focus on, not trying to predict the move.
Of course, a break of $10,000 and then $9,500 would be hugely bearish and would put the bears well and truly in control.