Forex Signals Brief for Jan 21: UK Jobs in Focus
Rowan Crosby • 2 min read
US Market Wrap
US markets were virtually closed yesterday, with only a small amount of action in some futures contracts.
As the week moves forward, most of the attention in the US will be back on earnings and that is likely to be what moves the SPX.
While Donald Trump will be speaking in Davos, which might not move the Greenback or even equities, but could hit whichever currency or nation he chooses to target next.
With US data thin on the ground this week, we will be watching Europe a little more closely.
Today, we get a look at ZEW Economic Sentiment out of Germany which will clearly impact the EUR/USD.
Meanwhile, the major theme today will likely be jobs from the UK. Despite the fact that it appears wage growth is on the decline, the number of new jobs created last month is expected to be quite solid at 110K.
The GBP/USD keeps making lower lows at the moment and could be ready for an extended move on the back of today’s result.
The World Economic Forum will also slowly start getting underway, with Trump likely to be the main focus once again.
Forex Signal Update
The FX Leaders Team closed only the one signal yesterday, with the GOLD hitting our take profit target.
Gold – Pending Signal
GOLD has been a bit of a wild trade this year and despite the fact that the safe-havens are a little soft, the yellow metal has been holding up. We think this could be a combination that leads to a good short position.
EUR/CHF – Active Signal
The EUR/CHF is still consolidating at the moment and there’s not much to see here as yet. But watch this one in today’s session.
BTC was little changed overnight as price remains under the $9,000 resistance level for the time being.
With US traders out of action on Monday, we saw small ranges and our thesis from yesterday remains the same.
We will continue to watch price and look for a breakout or failure on another attempt of $9,000.