The risk-on trade has been a good one this week and as we come to Friday, there is every chance of a bullish end.
There have been a number of stories this week surrounding, the US-China trade talks that continue to put a bid under risk assets.
We also get a look at the current state of US retail sales, which so far in 2019 have been reasonably solid. However, that could be about to change. There is the belief that Trump’s trade war could hurt confidence and there is a bit of a slowdown in employment as we saw from last week’s payroll figures.
The expectation today is for a very modest 0.2% figure for the month of August, down sharply from the last reading.
We also have to remember that retail sales are subject to some big jumps at times. But this number could be the make or break one, for Friday trade.
Elsewhere, there is Eurozone data on wages and the trade balance, which might play second fiddle to the sentiment from yesterday’s big ECB announcement. Either way, look for the EUR/USD to remain in-play today.
Forex Signal Update
The FX Leaders Team finished with 4 wins from 4 signals, capitalising on some excellent opportunities.
Gold – Pending Signal
The GOLD trade continues to be an interesting one as the $1500 level is still holding up on a longer-term chart. There are still a fair few reasons to be bullish on gold and while this level holds, we are hunting a long entry. Ideally when it pops a touch higher.
USD/CAD – Pending Signal
The USD/CAD has clawed back above the 1.3200 level and looks to be bullish on a short-term basis. We are still looking for a long opportunity here.
BTC is holding the $10,000 support level and once again we are sitting and waiting for a break of this triangle formation.
Shain has taken a look at the performance of the major crypto’s over the past 7 days as overall the bullish sentiment remains in-tact for the time being. Although there is talk that France is looking to ban Facebook’s Libra when it launches.