US Market Wrap
It was another US session that featured some weaker data than we might like and US equities fell away as a result.
The SPX was only marginally lower, however, it was another week where US jobless claims surged above the 4 million mark. In somewhat better news, continuous claims were down and that might be a small ray of hope.
In the UK, the GBP/USD surged higher as PM Boris Johnson declared they had moved past the peak – which would be a relief for many.
Meanwhile, we did hear from the ECB who for the most part left things unchanged, but will continue with their various emergency measures until the coronavirus crisis has passed. They also said they stand ready to do more if required.
WTI was also a bit of a mover yesterday, pushing higher and back towards the $20 mark. Prices have virtually doubled in a week, which is positive, albeit we are still a long way from the recent highs.
The Data Agenda
We have a number of countries that are away on Friday for Labour day, however, we roll on in the major markets such as the US and UK.
Out of the UK, we will get a look at manufacturing PMI which is expected to fall ever so slightly on the prior reading. But with the positive news of yesterday around the UK moving past the peak, this might be overshadowed somewhat. So perhaps the bullish GBP/USD can roll on.
In the US, the main data point of note will be ISM Manufacturing PMI for April. This is not going to be a pretty number either so we will watch the Greenback to see the response.
And finally, keep an eye on the Baker Hughes rig count if you’re interested in WTI. This is a good leading indicator of oil supply which has been a major sore point for the bulls recently.
Forex Signal Update
The FX Leaders Team closed one signal in the red yesterday as we mostly stayed out of the action.
Gold – Pending Signal
GOLD fell under the key $1700 level for the first time in a while and that has slowed the bulls down for now. This will be a trade to watch for the time being.
SPX – Watching
The SPX might have been red on the session, but more importantly, it is holding above the key 2,900 resistance level. If price can hold into the weekend that is very positive.
BTC has been back in the action as it smashed through the $9,000 level yesterday.
However, price couldn’t hold and it tumbled back under just as fast as it rose up. So that is telling us that there is interest around and of course we are all keeping on eye on the sector as we know block reward halving is just 12 days away.
Its next test will be another attempt at $9,000 and from that point, we can create a thesis as to how we should trade it.