The Fed is watching PPI

Forex Signals Brief for Oct 8: Will PPI Impact the Fed’s Thinking?

Posted Tuesday, October 8, 2019 by
Rowan Crosby • 2 min read

It’s another day that will be light on economic data, but there is still plenty of news and negative sentiment in the air that could well bring in some additional volatility.

This week, there are more talks between the US and China on all things trade and every time a new round of negotiations begin, markets seem to take it as a positive. That’s until they ultimately break down again and then we see a sharp drop and an uptick in volatility.

At the same time, concerns around a possible impeachment of the US President continue to make headlines, despite what any enquiry might come up with.

Today the key data point will be US PPI. This is another measure of inflation and one the Fed does like to monitor. A tick lower will be a concern and could stoke more belief that rate cuts are on the way. Conversely, an improvement could tell the opposite story.

In Europe, we get some second-tier data with German Industrial Production and the Swiss employment report, the main ones of interest for EUR/USD and USD/CHF traders.

Forex Signal Update

The FX Leaders Team started the week with 2 wins from 3 signals for a solid start.


EUR/USD – Active Signal

We are long the EUR/USD in a trade similar to yesterday. Support has been holding steady in the short-term and price keeps re-testing the downtrend line.

EUR/USD – 240min.


Gold – Pending Signal

GOLD has been continuing its long-running battle with the $1500 level and at the moment, doesn’t appear like it wants to break higher. While price remains below that point, we are looking at short opportunities.

Gold – 240min.


Cryptocurrency Update

BTC has had a busy couple of hours and has rebounded strongly after an attempt to break lower.

The downside test of $7,800 has once again attracted significant buying interest and price has rebounded all the way back up to the recent highs.

The $8,500-550 level, will likely cause some problems as it attempts to push higher.

This is now three attempts at the lows, which we could call a triple bottom, so this is now a pretty big support level.

I expect this range to be maintained for the time being and we again need to wait for another break out.

BTC – 240min.
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