The week looks like it is starting off slowly, but we have some major fundamentals ahead which will likely be key drivers of price over the next five days.

The biggest of those is, of course, the FOMC interest rate decision, that is expected to see yet another 25bp cut. While much of the economic data in the US is looking quite healthy, there are growing concerns about GDP, which will also be released in the leadup to the decision.

The status is that third-quarter GDP is expected to show that the economy grew only 1.7% in the three months to September, down from 2% in the second quarter.

It’s GDP that appears to be the big concern at the moment as inflation and jobs are relatively strong in the current environment. But the US can enter a technical recession if there are two consecutive periods of negative economic growth. Something analysts have hinted is on the cards for 2020 and it’s something the FOMC would like to avoid.

There will also be some more central bank headlines this week from the BOJ and BOC, which will be of interest to traders of the USD/JPY and USD/CAD. While we expect no change here, the outlook in particular for the BOC will be important.

Monday is a quiet day to start the week, but we will look for more political talk surrounding the Brexit and any more updates on the US-China discussions, which are so far going well from all reports.

Forex Signal Update

The FX Leaders Team put together a really impressive week finishing with 11 wins from 13 signals for an 85% win rate. Make sure you keep up to date with all the latest opportunities on the live and free forex signals page.

GBP/USD – Pending Signal

The GBP/USD will again be in focus today as the EU is set to meet to discuss a possible delay. Of course, last week UK PM Johnson failed to get a deal through the Parliament which has again thrown things into turmoil. We are still hunting long opportunities at the moment.

EUR/JPY – Active Signal

The EUR/JPY has run into some resistance overhead around 121.00 and has also made a lower high. This sets up a nice short and we are looking for more downside here today.

Cryptocurrency Update

BTC has made a huge jump higher since late Friday and has found its way back to the $10,000 level.

The news that Chinese President Xi Jinping suggested that the country would be investing heavily in Bitcoin’s underlying technology, blockchain sparked the rally. That then caught shorts off-guard and price squeezed into $10,000 before retracing.

Whether price can break that level remains to be seen, but we often see a retrace after a big squeeze.