Forex Signals Brief for Apr 8: Markets Taper Off as Hope Was Short-Lived
US Market Wrap
US Equity markets started the session full of hope as many were suggesting the peak of the virus was near.
By days end, it seemed that the positive sentiment was forgotten as the SPX and its counterparts ended the session in the red. Only just, but nevertheless down on the day.
At the same time, market volatility as measured by the VIX ticked up a little, but it now seems the bulk of the panic selling is behind us. That is also being indicated by a softish USD, that got bid up weeks ago along with the other safe-havens such as GOLD.
For now, markets sit and wait for further information. When news of falling infections in some of the most impacted areas begins to shine through more clearly, that could be the trigger the bulls have been looking for.
Today’s Agenda
Data is thin today, but one of the key products we need to pay attention to will be WTI and it will have some numbers worth watching.
Inventory data is set for release and one of the major issues that have led to the huge falls recently has been the ongoing supply glut. The supply cuts we having been hearing about have so far have not really impressed the market and today will be another opportunity to see what the production side looks like.
When we add that to the current demand issues thanks to COVID-19, it doesn’t paint a pretty picture for oil at the moment.
Forex Signal Update
The FX Leaders Team had one win from two signals in what was a quiet session as volatility has been contracting.
GBP/USD – Active Signal
The GBP/USD has been holding firm as PM Boris Johnson is still battling with the virus. While he is in the ICU his deputy reported that he’ll be fine as he is a ‘fighter’. Most of the majors rallied against the USD yesterday but we have a good risk/reward spot here, so we wait.
SPX – Watching
The SPX remains at a point where it really could go either way. Until it reclaims some key levels I am still biased to the downside. But clearly there is some degree of optimism in the air.
Cryptocurrency Update
BTC is pulling back towards the $7,000 level and I suspect this will be a very interesting 24 hours ahead.
The fact that price keeps making higher lows and is holding key levels is very much bullish. So the pullback and retest of $7,000 will tell us everything we need to know about who is actually in control.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals