Forex Signals Brief for Jan 24: Manufacturing PMIs Lie Ahead
Rowan Crosby • 2 min read
US Market Wrap
Most of the attention yesterday was on the ECB and hope that Christine Lagarde might come out with a few hawkish comments after a prolonged period of weak economic conditions.
Unfortunately, that was not the case for EUR/USD traders and the bears quickly gained control, despite finally being on the increase. So it appears that negative rates are here to stay for the time being and that won’t please the hawks.
Elsewhere, the SPX remained relatively flat on the session. The World Health Organisation (WHO) said it was “a bit too early” to suggest the coronavirus was global health emergency and as yet markets haven’t been hit too hard.
Once again much of the heavy data for today’s session will be from Europe as the main themes remain in place.
Today, we get Manufacturing PMI out of Germany, while there is also the same release in the UK, so the GBP/USD could be in line for some movement.
There will also be some secondary PMI’s out from across the Eurozone, and this can lead to some stop-start action in the Euro at times.
Later in the US session, there will be retail sales data for the USD/CAD in an otherwise quiet session from a data perspective.
Forex Signal Update
The FX Leaders Team finished with 1 win from 3 signals over the last 24 hours.
AUD/USD – Active Signal
EUR/CHF – Active Signal
The EUR/CHF fell when Lagarde didn’t impress with her comments. We have a fair bit of room here so we will let this one play out.
BTC has been quite soft since its last attempt at the $9,000 resistance level and for now the bears are ramping things up.
Yesterday, I suggested a break of $8,500, would lead to some more downside and a nice momentum short.
So far that appears to be what is happening here. The sellers are again in control and the target now is surely $8,000.