US Market Wrap

US markets finally had a sense of stability after a few rough days on the back of the coronavirus outbreak.

For the time being, markets appear to be satisfied that China is doing all they can to make sure the spread of the virus is being contained. China is preparing to let the WHO come in and provide further guidance on the situation that has already claimed the lives of more than 100 people.

As such, the SPX saw some upside yesterday, while other key risk assets started to show signs of bottoming out. However, it remains early days.

Today’s Agenda

While the world waits on more news from China, the attention turns back to the fundamentals and monetary policy. With the highlight of today’s session likely to be the FOMC interest rate decision.

There are no expectations that rates will fall (or rise), but once again all the attention will be on Jerome Powell and what he has to say.

Markets are hungry for any new information and while we don’t expect any significant shifts, his guidance will be the key to how the session unfolds.

Forex Signal Update

The FX Leaders Team closed three straight winners yesterday, as trades really went our way.

USD/JPY – Active Signal

The USD/JPY has bounced a touch after a little bit of relief came back into the markets. We are using this as a short opportunity and looking for a retrace.

EUR/CHF – Active Signal

The EUR/CHF finally had the big bounce we were looking for and price has been swept right back to break even. We will continue to let this one play out as it is a long term position.

Cryptocurrency Update

For the time being it appears that BTC has in-fact, claimed the $9,000 resistance level with buyers continuing to step up.

After the re-test held we have to assume the buyers have won the day. We must also remember that time confirms price, so the longer we see that level hold the more bullish we can become.

Price is also now hovering above the key 200SMA on the daily and that is all the more reason to believe this could be a turning point. So the door is open for another test of the big $10,000 level.