Forex Signals Brief for Apr 20: Will the US States Start to Reopen?
Rowan Crosby • 2 min read
US Market Wrap
Markets will start the week with a number of key questions still unanswered, but the main one being, ‘when can we get back to work?’
The debate about opening up the economy continued on the weekend and US President Donald Trump put the ball back in the state’s court – calling for the Governors to let the country get back to work. However, many feel it is still too early.
Mr Trump believes the COVID-19 situation is under control in many areas and states such as Texas and Vermont will allow certain businesses to reopen on Monday while still observing coronavirus-related precautions.
At the same time, we are in the midst of earnings seasons and we should expect a deluge of data to be coming out this week. Again, we are looking not so much at the results but the guidance as many are not predicting a good few months ahead. Which is all the more reason for businesses wanting to get back to work.
The Data Agenda
Data will once again play only a secondary role, but there are some releases that should give us a better indication of what we might be looking at as the week rolls on.
US jobless claims continue to be the must-watch release of the week and we are expecting the numbers to ease slightly after more than 22 million claims have already be made in recent times.
While in Europe, the EUR/USD will be a key focus as we start to see some PMI numbers that will not be all that good. And in the UK, we see some key data points such as employment as the GBP/USD could see some further volatility.
Forex Signal Update
The FX Leaders Team hit 7 winners from 11 trades last week, as volatility is still present and conditions are great for traders.
Make sure you follow our live signals as markets will be very active if the US does manage to reopen before 1 May.
Oil – Pending Signal
WTI is certainly soft across the board, but just how soft depends on what contract or product you’re looking at. The near month is showing price at $15, while the further months out are above $20. What that suggests is that markets do feel price will go up in the future, but that doesn’t mean it will today. We are looking for more shorts here.
SPX – Watching
The SPX moved higher on Friday and the key theme is again the reopening of the US economy. This is a fascinating trade at the moment and a unique time in history so keep watching closely.
BTC has remained in its holding pattern over the weekend and for the time being, is above the $7,000 level.
Clearly price is consolidating and what we know about Bitcoin is that the best opportunities come when we break those key levels. So for now, we watch and wait and get ready for the next breakout.