Forex Signals Brief for Oct 1: Safe-Haven’s Under Pressure
Rowan Crosby • 2 min read
Despite a steady stream of negative political headlines, markets continue to shrug off the bad news. So much so that we are seeing some sharp declines in the safe-havens, particularly in GOLD.
The yellow metal was down significantly yesterday as the month closed out and now has its work cut out to reclaim the all-important $1500 level.
Today, the attention will be on Europe early as we have some important data ready to roll out. We have manufacturing PMI out of Germany and the UK, which will be the main events for the EUR/USD and the GBP/USD. We also get Eurozone CPI, which for a long time has been the bane of Mario Draghi’s existence. Another soft number here won’t please the already-dovish ECB. As it happens, Draghi is also scheduled to speak later in the day as well.
Later in the day, the focus turns back to Canada, as they release their GDP print. We are looking at a very sluggish 0.1% for the month, down on the prior. A number that will be weighing on the minds of the BOC.
To round out the session, we get ISM Manufacturing for the US, in what is a data heavy day all-round.
Forex Signal Update
The FX Leaders Team finished with 4 wins from 4 signals in what was a great session for the boys to round out the month.
Gold – Pending Signal
As mentioned, GOLD was very weak yesterday as we closed out the month. Sometimes, with these month-end trades, price gets pushed further than what it should have as the big money tries to tidy up their balance sheets. As such, there is a chance of a quick bounce today.
EUR/JPY – Pending Signal
The EUR/JPY has been really gyrating around this 118.00 level and so far all moves have reverted back to the mean. So if we get a bit of a bounce, that might be an opportunity to short it back to that area. Clearly, the longer-term trend is down which is important as well.
BTC has been doing its best to fight back over the last 24 hours as the $8,000 level is holding for the time being.
I’ve heard some commentary, suggesting the bulls are back in control, given that we’ve made somewhat of a double bottom here.
Like I said yesterday, there is a chance of a short-covering rally if price could push through the $8,400-500 area, but it keeps failing just short of that. Suggesting there is still selling pressure. That is a real inflection point though so it will be one to watch.
If price can drop back under $8,000 after failing to break back higher, that could be another signal to re-short. Conversely, look for a break of that inflection point to the upside, for a short scalp opportunity. To me there is still no real reason to be looking to buy on a longer-term basis right now.