
Forex Signals Brief for Feb 11: Powell to Testify
US Market Wrap
US stocks markets continue to do what they do best at the moment and closed strongly to start the new week.
The SPX was up by 0.73% and once again was resetting the record-high levels. It was another day where we kept hearing more stories about the coronavirus, which has now seen more than 900 deaths, however, markets really aren’t paying attention any more.
At the same time, the Greenback is also pushing higher, on the back of some strong US data last week and sentiment which remains relatively solid at the moment.
Today’s Agenda
Most of the focus today will fall on Fed Boss Jerome Powell, as he testifies on the economy before Senate and House committees in Washington.
For the most part, we are all looking for some more guidance as to what might be in store for monetary policy. In truth, the FOMC is a little bit on the fence still and continues to wait on more data before taking a position.
While inflation is still sluggish, there is a lot to like in the US economy, with the jobs report from Friday suggesting things are still quite healthy.
We wouldn’t expect Powell would give much away, but any indications as to where rates might be headed in the short-term will be market moving.
Elsewhere, we get UK GDP out today. YoY we are looking at a very soft 0.8%, but there will be many hoping that the post-Brexit UK can finally lift the shackles.
Forex Signal Update
The FX Leaders Team closed one winner yesterday, in what was a quiet start to the new week.
GBP/JPY – Active Signal
The GBP/JPY is trading sideways at the moment and we are still looking for a short signal here. The GDP print today will likely bring some volatility.

EUR/CHF – Active Signal
The EUR/CHF signal is still holding support but the Euro overall has been getting sold down for the last six sessions. This is really a line in the sand and price must bounce off support.

Cryptocurrency Update
BTC might have had a foray above the $10,000 level but it appears to be short-lived.
Price fell back under that key level and we are now going to see just how strong this rally really is.
What we must watch for is the bounce and how price reacts. If it can’t regain $10,000, then we might have a possible short on our hands. But this is a high-risk, high-reward situation.
