US Market Wrap

Despite some more solid jobs numbers coming out of the US, all the focus yesterday was really in the UK.

While they too had some jobs data, it was once again the Brexit saga that derailed the GBP/USD.

The sellers came hard for the Pound after it newly-reelected PM Boris Johnson, made it clear he would be ruling out any extension to the transition period beyond December 2020. His plan was to add a revision to the Brexit deal and that sent markets into a tailspin.

The Pound is now driving lower, back to where it came from before the election against all the major currencies.

Today’s Agenda

Fresh on the back of the Brexit drama’s of yesterday, it looks to be a busy European session with a host of key data points set for release.

Arguably the most important of the day will be CPI out of the Eurozone, followed closely by UK CPI.

The EUR/USD has been the victim of soft inflation for a long time and it is the number one headache new ECB boss Christine Lagarde has inherited.

While the UK is also relatively soft with its CPI outlook, with the Brexit deal really hanging over the head of the economy in recent years.

Aside from that we will be hearing from Lagarde today, while there is also German climate data that will be worth watching.

Forex Signal Update

The FX Leaders Team didn’t close out any signals yesterday, but currently have three open signals.

NZD/USD – Active Signal

The NZD/USD has been soft since failing at the 0.6600 level. For the time being, the bears have taken control here which is causing a few issues for this signal.

USD/CAD – Active Signal

The USD/CAD still remains under the 1.3200 level after a failed push higher. Price also made a lower high and given that it survived the push, it now feels a fair bit more bearish. This might even be an opportunity for another entry if you missed the initial short.

Cryptocurrency Update

BTC continues to be very weak since breaking though the $7,000 level.

Our downside target was $6,500 and price pressed right down to near that level, depending on which exchange you look at.

This has again been a purely technical trade and it has been a wonderful short all the way down. As we speak, this would be an area I would likely be covering if I was still short as we tend to see price move from breakout to consolidation.

That said, I wouldn’t be shocked to see another leg lower though support, but these second little pushes often don’t hold on the first attempt.