US Market Wrap

US equity markets gave up their run of gains on Friday, despite the $2 trillion package US President Donald Trump has been pushing through Congress.

The SPX and DOW might have fallen away, but what has been an interesting development is that we have finally seen the panic buying in the Greenback ease off. In fact, the US Dollar Index slid sharply on Friday and that has helped the likes of the AUD/USD, NZD/USD and GBP/USD to rally strongly. These up moves have been gaining some momentum after a big slide in most of the majors.

However, there could be more falls coming this week. The number of cases of coronavirus in the US has overtaken China and that will only continue to grow from here. China has thrown everything they have at the crisis and they have started to see the number of new cases finally falling. The US is a long way from that point at this stage, so things will get worse before they get better.

So for financial markets, I suspect we will have a rocky few months ahead.

Today’s Agenda

At the moment, looking at the data is really just not that useful. The numbers are changing so rapidly that by the time it comes out it is already dated.

A good example of that will be the US jobs data due on Friday. Normally this is the biggest data point of the week. But in reality, this number is changing rapidly.

We’ve already seen the huge jump in jobless claim last Thursday and in-fact, that is becoming the ‘must-watch’ data point at the moment. In time, the jobless rate will likely stabilise in a few months and that will paint a clearer picture of what we are dealing with. So for this week, keep an eye on jobless claims more so than the official NFP data.

So for now, we must continue to focus on the sentiment and the news cycle. So for traders, this means we have will likely have many opportunities. And despite the negative news headlines, even some of the great traders agree, that markets will bounce back. We just have to be ready to act.

Forex Signal Update

The FX Leaders Team hit 14 winners from 18 trades last week, in what is shaping up as a huge month for the team and all our followers.

Be sure to follow our live signals as we are looking for another great week ahead.

AUD/USD – Pending Signal

The AUD/USD has bounced from under the 0.6000 level and is making a series of higher lows on the way up. This is bullish technically speaking, but how long will this bounce last before the sellers pile back in is the real question?

SPX – Watching

The SPX has been making a habit of staging a mid-week rally, before getting sold heavily on a Friday. We’ve been seeing a lot of the negative updates come out over the weekend recently, which has led to Monday selling as well. Will this week be the same?

Cryptocurrency Update

BTC didn’t make a run at the $7,000 level and has since fallen back towards the $6,000 mark.

It now looks like we will remain in this type of holding pattern for the time being. As I’ve been saying, Bitcoin and the crypto space aren’t the main game in town during times like these. $5,000 will be support if price pushes lower.