US Market Wrap

US markets were mixed yesterday as the world waits on the phase one trade deal between the US and China that is due to be signed today.

The SPX was a little soft, while the Greenback continues to remain in a holding pattern ahead of what could be an explosive event later today.

There was some slightly soft CPI data released yesterday in the US but most fundamental will likely be overshadowed ahead of the official signing.

Today’s Agenda

Before the world gets to see the trade deal unfold, there are some data points to look out for today. There is a host of CPI data out of the Eurozone and the UK which will keep the GBP/USD and the EUR/USD active. While in the US session, we get PPI on the back of yesterday’s CPI print.

In terms of what we might expect today, while the deal is getting signed, there are reports that we won’t be getting any further tariff cuts which the market might not take all that well.

What that suggests is that we won’t likely see much progress this year ahead of the US Presidential election in November, so clearly the Chinese economy will still be facing some hurdles in the next 12 months despite today’s events.

Forex Signal Update

The FX Leaders Team finished with 1 win from 2 signals as we wait on the phase one signing today.

AUD/USD – Active Signal

The AUD/USD has been holding around the 0.6900 level, but does look soft. We remain open in our short position.

GBP/USD – Active Signal

The GBP/USD keeps making a series of lower highs and we are now short looking for price to break down under the 1.3000 level.

Cryptocurrency Update

BTC has held the $8,400 level and is surging towards $9,000 resistance.

After breaking that tight range an extended move was always on the cards and that’s what has played out.

Of recent times, the first break has held in Bitcoin, but the second is where price seems to run out of steam. With that in mind, we could start hunting a short position on a failure of $9,000.

That said, these levels do run and a false break is a real chance at this price point.