Forex Signals Brief for Dec 13: Johnson Takes Control
Rowan Crosby • 2 min read
US Market Wrap
It was a huge session in the US yesterday, that featured more big trade news and the ‘Brexit’ election.
First to the US, and we heard reports that the US and China had reached an in principle agreement. While more details are still to be announced, the market liked what it was hearing and this helped the SPX surge back to record levels.
At the same time, it looks like Boris Johnson and the Conservatives, are set to take control of the UK Parliament. This means we will now likely see a Brexit deal happen assuming they take the reins in both houses.
The GBP/USD is understandably very bullish today and will likely be the major currency to watch.
Clearly all the action today will be based around sentiment. We have had two major news catalysts, that will likely keep both volumes and volatility elevated, which is great for traders.
There are a couple of things to watch out for at the start of the US session, with the main one being retail sales data.
Given the strong result we saw on the US jobs front, there will be hope that this starts translating into consumer spending, which of course, stokes inflation. So this is an important data point for the USD.
Otherwise, we will be on the lookout for more details on any US-China trade deal and of course the fallout from the big election win by Boris Johnson in the UK.
Forex Signal Update
The FX Leaders Team finished with 1 win from 3 signals as all the news came late in the day.
EUR/JPY – Pending Signal
The EUR/JPY had a nice breakout on the back of the news, but this is not one to chase at these highs. It is worth waiting on a pullback, before looking for a long entry.
USD/JPY – Pending Signal
The USD/JPY saw a big jump yesterday right off the key 108.50 level. While, I’d like to think that level played a role, in reality, this was a fundamental move. If 109.50 lifts, then we could have another long trigger though.
BTC is closing in on the $7,000 level as the world’s attention has certainly been elsewhere.
The sellers are really keeping price knocked down for the time being, so we wait on either a break of $7,000 to the downside or a squeeze higher through $7,600.