Forex Signals Brief for Feb 5: Stocks Shake Off Virus Fears
Rowan Crosby • 2 min read
US Market Wrap
The coronavirus seems to be well and truly priced into the markets at the moment as US stocks continued to rebound.
Yesterday, it was the strong data that helped sentiment, while today we saw some solid results from the likes of Tesla which lifted sentiment across the board.
The SPX is now on track to try and re-test the highs, which would be quite a feat given the negativity in the media surrounding coronavirus.
Today we are going to be seeing a host of PMI data rolled out across Europe as well as the first look at the monthly US jobs situation.
With a slew of PMI data across Europe, the trading conditions can sometimes be a little stop-start so it could be a choppy morning for the GBP/USD and the EUR/USD.
Later in the session, US jobs fall back into focus as we get the private ADP employment report. This is a good preview of what might come on Friday and we are expecting to see 156K new jobs. There will also be ISM non-manufacturing PMI coming up.
We should also note that ECB boss Christine Lagarde is speaking today so that is bound to garner some interest.
Forex Signal Update
The FX Leaders Team finished with the one winning signal from four trades yesterday after a long string of winners finally came to an end.
AUD/USD – Active Signal
Our AUD/USD held the 0.6700 level nicely and benefited from global sentiment as well as the RBA decision.
EUR/CHF – Active Signal
The EUR/CHF signal has benefited a touch from the improved sentiment but is still at an important stage. A break of the swing high would be important for us here.
BTC has started to lose some of its steam in recent sessions and so far that $9,500 level is really starting to take hold.
Price has dropped through the $9,250 level which was support and is closing in on $9,000.
Bitcoin really has been a safe-haven proxy of sorts recently which is interesting and I would argue if there is truly a relationship there. But we must, of course, trade the price action.