Forex Signals Brief for Sep 16: Oil Spikes as We Await the FOMC
Rowan Crosby • 2 min read
Markets have started the week on shaky ground after an attack on a Saudi oil facility has seen the price of WTI skyrocketing.
The news broke late Sunday amongst fears that the global supply of oil would be significantly disrupted after Yemen’s Iran-backed Houthi rebels used drones to attack the oil facility.
The impact would see around a third of the Saudi supply go offline, which would equate to 5-10% of the global supply. US President Trump moved quickly to ease fears, saying that he would release US oil reserves to temper supply issues.
There is no timeline yet for when oil production will be back and it could well be weeks away, meaning oil could see some more follow through.
Outside of the Saudi attack, markets are fully focused this week on the FOMC and if, in fact, we will see another rate cut from Jerome Powell and his men. The Fed is widely expected to cut its key rate target range by 25 basis points, while there will also be fresh forecasts for 2020.
Risk-off will be the order of the day to start the week, so we will wait patiently for the US open to see how markets respond to today’s news.
Forex Signal Update
The FX Leaders Team finished with 12 wins from 21 signals for a 57% strike rate over the course of last week.
Gold – Pending Signal
The GOLD trade looks like it is back on and price has popped above the $1500 level. There could well be more follow through here today as Europe awakes to the latest news, so we will be looking for a long signal here.
NZD/USD – Active Signal
The NZD/USD has fallen away in early Asian trade thanks to the Saudi attacks and a risk-off open. While this one is holding on, we will need to watch closely as the day develops.
BTC is still above the $10,000 support level and really has not done much for a number of days now.
As it stands our triangle pattern has started to gobble up price so we are on the verge of a break out without really seeing any big moves.
Price really needs to decide one way or another and again we are forced to wait and see on this trade. But sometimes no position is a good trade as there is no point being in something for the sake of it.