Forex Signals Brief for May 20: FOMC Minutes Ahead
Rowan Crosby • 2 min read
US Market Wrap
The bullish start to the week has come to an end as equity markets in particular struggle to break out of their current range.
Yesterday, hopes of a vaccine faded along with the underlying optimism. That said, in the forex markets, it was the commodity currencies that appear to be looking the most bullish.
Meanwhile, GOLD has staged a bit of a rebound as we thought it might and is still very much bullish at the moment. The USD remains under 100 on the US Dollar Index and across the board, I think it’s fair to say that many assets are in a bit of a holding pattern.
The Data Agenda
Today, we get to hear from the FOMC when they release their minutes from the last policy meeting.
All week long, we’ve been hearing from Fed boss Jerome Powell and I think by mid-week, the impact of what might come from the release today could have worn thin. However, he has made it clear that he will continue to use all the tools at his disposal to prop up the struggling economy. A hint of negative rates would be the thing that could really light up markets today.
The other major item on the agenda in the US is WTI inventories. Oil is slowly but surely climbing off the canvas and supply is easing as producers keep on putting back on production. Will this keep happening?
Earlier in the session, the UK is again the one to watch as we get a host of top-tier data. CPI and PPI are really the two that we need to watch, however, also note that the BOE Governor will be speaking. So the GBP/USD could see some volatility.
While for EUR/USD traders, Eurozone CPI is due for release and it will show a fall as with most economies at the moment.
Forex Signal Update
The FX Leaders Team had 2 winners from 5 signals over the last 24 hours.
EUR/USD – Active Signal
The EUR/USD is trying its best to gain some ground and is at the top of the downtrend line. We are long here looking for a break higher.
AUD/USD – Active Signal
The AUD/USD has been a strong performer recently after what was a big sell-off. We are long hoping for more upside.
As BTC continues to make that familiar ascending triangle pattern and price coils tightly, we are readying ourselves for a test of $10,000.
Otherwise, there is little to report in the past 24 hours as we let this one play out for now.