US Market Wrap

US markets started the week in quiet fashion ahead of what is set to be a big week, with the US-China phase one trade deal set to be signed.

The SPX once again rose as we have become accustomed to, however, there was also a hint of positivity in the air ahead of US earnings season.

With interest rates set to remain low for the foreseeable future, companies that are producing strong earnings are trading at a premium and that might be something we’ll continue to see throughout February.

Meanwhile, the Greenback remains relatively quiet ahead of the Wednesday’s US-China deal, but we could see sharp moves once we have a clear outcome.

Today’s Agenda

Interestingly, today all the attention will be back on the US as we get a look at Core CPI data.

What makes this one to watch is the fact that the YoY rate is expected to be 2.3%. This is pushing up to a level that the FOMC would be happy with. It also strengthens the hawk’s case for rates to rise.

While we do expect low rates for the coming 12 months, the scales are ever so slightly turning. On the back of strong jobs growth and some big developments between the US and China on trade.

Forex Signal Update

The FX Leaders Team finished with 2 wins from 2 signals in the EUR/JPY to get the week started on a positive note.

AUD/USD – Active Signal

The AUD/USD has fallen away sharply and is now making a head and shoulders pattern. We are targeting another test of 0.6850.

GBP/USD – Pending Signal

The GBP/USD remains soft and that was not helped by some poor data yesterday. We are looking at a short signal under the 1.3000 level.

Cryptocurrency Update

BTC looks like it is about to test key resistance at the $8,400 level after the bulls really started to ramp things up.

Only yesterday, we were looking at $8,400 or $7,700 as our two key inflection points, however, for now it appears that price action is starting to get more bullish.

If the break holds, there is certainly some more room for some upside here, which would be a strong start to 2020 for both Bitcoin and the whole sector.