Forex Signals Brief for Dec 10: UK In Focus
Rowan Crosby • 2 min read
US Market Wrap
Markets were slow to start the week in the US, with the lack of action being a combination of limited economic data and some big events on the way.
Of course, most of the attention this week is on the FOMC and as such, we shouldn’t expect anything too big until we get the opportunity to hear from Jerome Powell. While the expectation is for no more changes, the lack of newsflow this week means that it will still play an important role.
At this stage, the Greenback has been falling away, since the big spike we saw to end the week. That will likely continue until we get some more guidance from the FOMC, so I wouldn’t expect much volatility today, short of an unexpected news item hitting the wires.
Most of the attention early today will start to shift back to the UK and the GBP/USD. It is a huge week for the Pound and today we get an insight into the state of the economy with GDP data due for release.
The expectation is that we will see some sluggish data for the quarter, as the UK remains somewhat trapped between a rock and a hard place, with the Brexit debacle still hanging over their heads.
Of course, this could all be resolved by weeks end as the UK heads to the polls, with Boris Johnson looking to not only secure the Prime Ministership and control of the parliament, but also a mandate for his Brexit plans.
Forex Signal Update
The FX Leaders Team finished with 2 wins from the 3 signals to get the week started on the front foot.
NZD/USD – Active Signal
The NZD/USD has been very bullish lately on the back of changes to bank funding requirements being held off for now. As a result, we’ve been looking for long signals here and so far that has been paying dividends.
Gold – Active Signal
GOLD has been somewhat reminiscent of the broader markets at the moment, with sentiment relatively strong. As such price has fallen away over recent months. That said, it could never really break down and we are long with good support below.
BTC continues to hold under the $7,600 level as we pointed out yesterday.
I think at the moment, this trade is really just a wait and see. That said when/if the $7,000 level falls I will be looking to pile in.
I feel that we are simply in that period of volatility contraction that has been a recurring theme in Bitcoin and all the major coins of recent times.