Forex Signals Brief for May 28: Jobs and GDP Ahead
Rowan Crosby • 2 min read
US Market Wrap
US equity markets continue to claw back their losses and have put together yet another green session, while the Greenback has also held up after a period of selling pressure.
Importantly, it looks like the SPX has reclaimed the 3,000 level which is big from both a psychological and technical point of view. Much of the up moves this week have been on the back of improving worldwide sentiment as the worst appears to be behind us now.
Data has been thin on the ground but as the week pushes on we will start seeing some more top-tier numbers rolling out.
The Data Agenda
The real focus today, will again be on the state of US jobs and to see if and when this key indicator can turn the corner.
It’s another week, where jobless claims will fall, but the number is still above 2 million, which is very high. Continuing claims are also still ticking higher, but finally, we are starting to see that number flatten out. That said, there is the belief that millions of jobs are not coming back.
We are also looking towards the US GDP release for Q1, however, much of the big downgrade here appears to have already happened and we know we are staring at a -4.8% contraction. Hopefully, it can bounce back as quickly as it fell away as the various states end their lockdown measures.
Other data of note will be Core Durable Orders, Pending Home Sales and WTI Crude Oil Inventories.
Looking to Europe, German CPI is probably the only real market-mover today for the EUR/USD so much of the attention is clearly going to be focused on the US session.
Forex Signal Update
The FX Leaders Team hit 4 winners from 5 trades yesterday, as the guys put in a really solid performance.
Make sure you follow our live signals as this could be another day of opportunity.
USD/JPY – Active Signal
The USD/JPY has been consistently pressing up against the 108 level for some time now and so far we think this one is a long opportunity.
Oil – Pending Signal
WTI is in focus as the release of the weekly inventories will let us know how much supply is being absorbed at the moment. Price remains bullish, despite running into solid selling at $35. A bounce could be on the cards here.
BTC managed to defy the odds and reclaim the $9,000 level despite a bearish looking chart.
Support at $8,500 held and we can see there is a bounce taking place. The downtrend has also been broken in the short-term. $9,300 is resistance here and that will be the first test.
I’m still prepared to see another push and fail under $10,000, as has been the trend of recent times.