US Market Wrap

As the days push on, the commentary around global financial markets continues to improve.

We are hearing more and more analysts and fund managers come out and predict a sharp ‘V-shape’ market recovery which is already showing signs of playing out.

While the highs might not get taken back all that quickly, the lows are now looking a long way off, particularly in the likes of the SPX which has jumped more than 20%. This changing sentiment and positivity surrounding the peak in COVID-19 continues to be a reason why the USD is falling away. That said, the WHO believes countries need to remain cautious.

However, what is interesting is that there is still a strong bid in GOLD, which we’ve been focusing on a lot here at FX leaders. While WTI continues to languish and appears it that price wants to make another run at the lows of $20.

Today’s Agenda

There are a couple of interesting events today, that might not impact price movements, but will be an important gauge.

The first is, of course, US retail sales, which is expected to take a severe hit. The data for the month of March is looking like we are going to see a -4.8% contraction. Even the panic buying and move to online, doesn’t appear to be enough to cover the large hit from a wide range of bricks and mortar retailers.

We’ll also be waiting to see what the BOC has to say and what the fallout will be for the USD/CAD. At this stage, most of the world’s central banks have already made their aggressive rate cuts, so this is more about seeing what the outlook might be and what adjustments are on the horizon.

Forex Signal Update

The FX Leaders Team had one win from three signals as our GBP/USD trade closed out in the red.

Be sure to follow our live signals as opportunities are still great for traders.

EUR/USD – Active Signal

The EUR/USD has been pushing higher thanks to a risk-on feel at the moment as well as a soft USD. We are short hoping for a bit of a pullback.

SPX – Watching

The SPX continues to grind higher. The expectation is that we will see new highs ahead after a period of consolidation. Which is a sharp disconnect to what many might have thought only a few weeks ago.

Cryptocurrency Update

BTC is still showing only low volatility at the moment. The key thing we are watching is whether price fails on the restest of the $7,000 level. We can see price mounting a challenge, but if that level holds I suspect price will tumble.

A nice entry might be a break of the most recent lows after a fail at $7,000.