Forex Signals Brief for Mar 3: The Market Rebounds
Rowan Crosby • 2 min read
US Market Wrap
The bounce that we’ve been waiting for finally came and it was a record move.
The SPX surged nearly 5%, which was the biggest one day gain we’ve seen since March 2009, which was following some of the fallout from the GFC to put it in context.
There is some growing expectation that the FOMC will cut rates and that has seen sentiment lift in the short-term at least. This is setting up for a very interesting week to see which side of the ledger ultimately wins the day.
Today the main focus is once again on sentiment but we might have to wait until US traders return to their desks.
While Asian markets are looking very bubbly today, there is clearly still some worries around so we don’t know quite what will happen later on.
The main focus in Europe from a data point of view will be the CPI print that is expected to show a sluggish fall to 1.2% in the Eurozone. The coronavirus is not likely to be helping the cause particularly in places like Italy, so we must assume the EUR/USD will still be under some pressure going forward.
That said, all the attention remains on stocks, bonds and of course GOLD as we try to get a read on what today has in store.
Forex Signal Update
The FX Leaders Team finished with two wins from four signals in what was a volatile open the week.
GBP/JPY – Active Signal
The GBP/JPY has been a good proxy trade for what has been going on as it features a risk-on and risk-off element. It’s basing at the moment, so we will continue to watch.
SPX – Watching
The SPX continues to be the one to watch and we will be keeping a close eye on whether or not we see any follow-through today.
BTC looks like it has pulled itself off the canvas for the time being and joined the rally over the last 24 hours.
The $9,000 level is still key resistance so I would expect that to show some selling pressure.
Conditions are wild at the moment, but I remain bearish based on the technicals at this stage.