Forex Signals Brief for Jan 27: Coronavirus Weighs on Markets
Rowan Crosby • 2 min read
US Market Wrap
Once again the focus in the US was the growing worries surrounding the outbreak of coronavirus, which so far is only continuing to grow.
There are now reports that 2000-3000 people have been infected with up to 80 reported deaths.
Outside of the worries surrounding the global coronavirus outbreak, there are a couple of key events to watch out for.
The first is, of course, the FOMC meeting. While there is no expectation of a change in rates, there will again be plenty of focus on Jerome Powell and what he has to say.
At the same time, we’ll also hear from the BOE in what will be the final meeting for Carney and also the last before the official Brexit deadline at the end of the month.
So as it stands, we are set up for an interesting start to the trading week, with negative global sentiment and a couple of key central bank announcements to focus on.
Forex Signal Update
The FX Leaders Team finished with seven wins from 13 signals last week for a 54% strike rate in what was a solid performance.
USD/CHF – Active Signal
The USD/CHF has opened the week relatively flat which is a bit out of line with the other safe-haven plays. As such, this could be in for a bounce when the sentiment changes and we are long here.
EUR/CHF – Active Signal
The EUR/CHF continues to weaken at the moment, but we have plenty of room here. So hopefully this one finds some buyers later in the US session.
BTC has seen a bit of upside over the last few days and is back pushing towards the previous area where it made a lower high.
So that region was really the $8,600-$8,800 region. So a break of that would mean we should see another test of the $9,000 resistance level.
However, another failure of that point would be very bearish in my book. There are some that are saying Bitcoin has safe-haven appeal, but I feel that still remains only a very weak relationship. There is also likely to be lower volume without Chinese participants.