Forex Signals Brief for Feb 10: Coronavirus and Powell in Focus
Rowan Crosby • 2 min read
US Market Wrap
US stocks fell away on Friday as we saw what some are calling a little bit of a mixed US jobs report.
The US economy created 225,000 new jobs in January, which was well above expectation. However, the unemployment rate jumped to 3.6% from 3.5%, in what was a bit of a black mark in an otherwise decent update.
What would be pleasing many in the US, was the fact that wage growth is also improving, growing at 3.1%, up from 3.0%, which is outpacing inflation and a stat that many other countries would be envious of.
The SPX fell by the close of trade as reporting season slowly winds down, while the Greenback continues to press higher, weighing on the other majors in the process.
Coronavirus might not have hit the stock market too hard, but it is still making plenty of headlines. Over the weekend the numbers of deaths pushed up towards 900 which is now more than SARS.
Once again this week will likely see market moves on the back of any headlines as they continue to roll out – good or bad.
Elsewhere, US markets will be looking towards Fed Boss Jerome Powell, as he testifies on the economy before Senate and House committees in Washington. We also have some key data on US inflation and retail sales data.
Forex Signal Update
The FX Leaders Team finished with 7 wins from 14 trades for a 50% strike rate on the week.
GBP/JPY – Pending Signal
The GBP/JPY is trading just above a big support level. Should this level break we could see a sharp fall and this might be an opportunity for a short signal.
EUR/CHF – Active Signal
The EUR/CHF signal is still holding relatively flat, however, I am closely watching for a break of the swing high here which will lead to further buying pressure.
BTC has been very bullish last week and the predicted test of the $10,000 level has come.
Price has broken through and is trading above that point. However, that is not to say it will hold.
This is becoming a huge point for all followers of cryptocurrencies, and we are going to be make or break this week. I am purely looking at technicals here. So either the pullback holds or we make a double top and fall back under. Either I suspect we will see volatility.