Forex Signals Brief for May 29: Can Markets Hold On?
Rowan Crosby • 2 min read
US Market Wrap
It was another day of less than impressive data out of the US, but for the most part, markets didn’t really seem too worried.
Jobless claims came in at more than 2.1 million for yet another week while continuing claims are still sky-high. At the same time, US GDP was worse than expected at -5.0%, while core durable orders were horribly weak.
For the bulk of the trading session, it appeared equity markets would close in the green again, however, the sellers did end up coming late. More concerns around the state of US-China relations are continuing to boil in the background and is weighing on otherwise positive sentiment at the moment.
The Data Agenda
There will be a little bit of data rolling out on Friday, to round out an otherwise quiet week on the economic calendar.
Early in European trade, the attention will be on Eurozone CPI which is expected to be near on flat at just 0.1%. There will also be a host of secondary releases from some of the member countries.
Later in the US session, we will look to Canada and the USD/CAD as we try to gauge the state of their economy with GDP set for release.
The US is again thin data-wise, but we will all be looking to Fed boss Jerome Powell, as he is speaking late on Friday. His comments haven’t really had much impact lately, as we have been hearing from him regularly and in reality, there is little more to be updated in the short-term.
Forex Signal Update
The FX Leaders Team closed one signal in the green yesterday as our GOLD trade hit our take profit target.
USD/JPY – Active Signal
The USD/JPY hasn’t been able to make much headway at the 108.00 level as the Greenback has weakened across the board, but we remain long.
Oil – Pending Signal
Right on queue, WTI has bounced and as we said yesterday, is looking bullish. As sentiment continues to improve look for a real test of resistance at $35.
BTC has remained bullish and is looking like it wants to have another attempt at the $10,000 level.
The strength comes despite the fact that Goldman Sachs came out and suggested ‘Bitcoin was not an asset class,’ which gives us an idea of what the investment bank thinks about the prospects for cryptocurrency.