Forex Signals Brief for Dec 17: Trade Sentiment Boosts Markets

US Market Wrap

Markets have continued with their trade deal induced Santa rally, as stocks continue to push into record-high territory.

All the talk on Wall Street yesterday was around the fact that the ‘phase one’ deal was officially going ahead. There were plenty of sceptics around that were worried about the lack of detail in the announcements, but we keep hearing that all is looking good – at least from the US side.

The Chinese appear to be a little more circumspect, but that didn’t stop the SPX from pushing towards the 3,200 level, which is unprecedented territory.

Today’s Agenda

Early in the European session, we’ll be watching the GBP/USD as we get more key data out of the UK. Today, the attention is on the employment report, with an expected uptick in the jobless rate a little bit of a concern.

But by world standards, it appears that wages and jobs are relatively strong, which mirrors the US situation to some degree.

Later in the session, there is some top-tier US data, with building permits and more jobs data. While the BOE’s Carney is speaking later in the day, so keep a close watch on the Pound throughout both sessions.

Forex Signal Update

The FX Leaders Team finished with the 1 winner to start the week in the green.

NZD/USD – Active Signal

The NZD/USD been struggling to get above the 0.6600 level and the first attempt couldn’t hold. The long-term trend is bullish here so we need one more big push to hit our TP.

USD/CAD – Active Signal

The USD/CAD broke down through the key 1.3200 level but has started to retrace. We are short and looking for more downside so hopefully, we have enough wiggle room with our stop.

Cryptocurrency Update

Right on queue, BTC has broken down through the $7,000 level.

This is something I’ve been talking about for around a week now and sure enough, the break came. There wasn’t much by way of news, suggesting to me this is technical in nature.

The trade I would be looking for now would be a restest and fail at $7,000, which opens up the door for another push lower to $6,500.