Forex Signals Brief for Jan 2: The Bulls Remain in Control
Rowan Crosby • 2 min read
US Market Wrap
Markets closed out the year on a positive note in the US, with the major indexes all inching higher to finish the year.
For the most part, US equities were incredibly strong in the final stages of the year and that is expected to remain the case as January gets underway. At the same time, the Greenback has been soft as risk-on is the order of the day.
The main news was that US President Donald Trump is expected to sign a phase one deal with China on January 15, which is sure to keep the sentiment bullish for the time being.
A number of markets are still away today, but there will be some key data nevertheless.
In Europe, both the EUR/USD and GBP/USD will be in-play early on the back of PMI releases. The German PMI will be a real key data point to watch out for as this has been a relatively soft number in recent times and one of the reasons the economy is verging on recession.
Later in the day, we get the FOMC minutes, which was from the meeting where the board left rates unchanged. We are all a little unclear as what the FOMC will do next so this might help clear things up.
Happy New Year from the FX Leaders Team.
Forex Signal Update
It’s been a relatively stop-start week, with not much action to write home about as yet.
USD/JPY – Pending Signal
The USD/JPY has fallen away sharply thanks to the soft USD. The 108.50 level looks like good support and could be a place to be a buyer.
Gold – Pending Signal
GOLD has really shot higher to close out the year and now well over the key $1500 mark. There is resistance around $1525, so this might be a good short opportunity today.
BTC is still a bit on the soft side, but volatility has really contracted sharply.
Price is still under the $7,600 level and holding above $7,000 for the time being. All my attention remains on that support for the time being as I still suspect to see another test of that mark in the coming days,
Bitcoin might have been the most profitable trade of the decade, but there is no doubt the bears remain in control at the moment.