US Market Wrap

US market pressed higher for another day, lead by a strong rebound in retail sales.

After the end of the lockdown period, US retail sales bounced back to 17.7% which was bigger than the experts predicted and it also helped drag markets higher.

We also heard from FOMC boss Jerome Powell, who continues to be a little restrained when it comes to dishing out any positive sentiment. Some comments by him about the Fed not taking up the full allotment of corporate bonds weighed on markets to some degree.

While at the same time, there were some positive headlines about a drug called dexamethasone, which has shown some promise in helping the most severely impacted COVID sufferers.

The Data Agenda

The busy week of data continues today and we first get to look to Europe and the UK for CPI prints that will impact the GBP/USD and EUR/USD. We all understand that CPI is a little soft at the moment, but the markets will want to see how the numbers are looking comparatively.

Later in the US session, the USD/CAD will also be watching the Canadian CPI number, however, WTI crude oil inventories is really the one that will be of most interest.

For US traders, building permits are due for release, while Jerome Powell will be speaking for a second day, and we will wait to see if he drops any market-moving information.

Forex Signal Update

The FX Leaders Team closed one signal in the green yesterday with a nice win in WTI.

Gold – Active Signal

GOLD is still under resistance and we are into another short position with good protection above. Powell’s comments impacted the yellow metal yesterday and he won’t be changing things around too much ahead of today’s appearance.

EUR/USD – Active Signal

The EUR/USD has made a lower high and is looking a little shaky. We are short here, trying to get ahead of any downside.

Cryptocurrency Update

BTC is still sitting between the $10,000 level above and $9,000 below. The latter got tested yesterday and once again the buyers bid it straight back up.

Volatility is very low at the moment so the options are to play the range in between those levels or wait for a meaningful breakout.