Forex Signals Brief for May 19: Powell Set to Testify
Rowan Crosby • 2 min read
US Market Wrap
Markets found a bid late in the day as talk of a coronavirus vaccine, spurred the positive sentiment.
Drugmaker Moderna said its experimental COVID-19 vaccine has begun to show positive signs in an early-stage trial. This lead Wall Street higher with the SPX closing the session up 3.15% which was a strong result.
The risk-on sentiment forced some selling in the Greenback which in turn lifted the likes of the AUD/USD and NZD/USD.
The positive news also bought an end to the bull run in GOLD, with price falling away sharply after what had been a big breakout.
The Data Agenda
Today, we get to hear from the boss Jerome Powell in what will be a highly anticipated event as he testifies before the Senate Banking Committee.
Most of the attention will be on the current stimulus programs and what changes he might see ahead based on the Fed’s outlook. It’s not likely to be a rosy one and he has been known to be a little bearish recently, so this could be a market-moving event. Particularly after the positive start to the trading week.
Elsewhere, the data from the UK will also be important today, especially for traders of the GBP/USD. The UK will release their version of employment data and jobless claims, which is going to show a sharp jump in those that are unemployed.
These events haven’t always been as volatile as we might expect though as markets are prepared for the worst.
Forex Signal Update
The FX Leaders Team didn’t close any green signals yesterday but we still have some open positions that are ticking along at the moment.
Gold – Pending Signal
Just when we thought GOLD was flying, it saw a sharp correction and a fall back under $1750. We are still biased to the long side and the odds of a bounce are high.
GBP/USD – Active Signal
The GBP/USD has been weak all month long and the trend is quite apparent on the charts. We are short as a result looking for some more downside to come.
BTC has seen a very quiet start to the trading week as price is holding steady between $9,500 and $10,000.
If that support can hold, that will imply a test of $10,000 is going to happen. Whether that holds is another story.