Forex Signals Brief for Jul 21: Risk-On Continues
Rowan Crosby • 2 min read
US Market Wrap
The US markets started the week in the same sort of fashion with which we are getting used to, as risk assets led the session.
The main news of the session was the promising vaccine results from the Oxford/AstraZeneca study, which comes on the back of some other trials that are all performing incredibly well given the timeframes we are talking about.
Meanwhile, leaders from both the EU and the US continue to try and organise what the COVID relief and stimulus measures will look like, but no doubt a positive result here will help underpin the risk trade going forward.
The Data Agenda
Data will be scarce today as markets look to carry on with the momentum of recent times.
In reality, the only major data point of note will be from Canda by way of retails sales. The USD/CAD is so far expecting to see May retail sales bounce back to 12%, but notably, this is a bit of a delayed indicator now.
Otherwise, the same old storylines will be in focus regarding stimulus and the number of COVID cases. However, it is also worth watching the equities space given the strong run we are seeing in the tech sector at the moment and the fact that earnings season is in full swing.
Forex Signal Update
The FX Leaders Team hit 2 winners from 3 trades yesterday, but we currently have 4 open signals.
Make sure you follow our live signals as the week ahead looks like it could be a big one.
USD/CAD – Active Signal
The USD/CAD has fallen back towards the 1.3500 level after money flowed into the CAD yesterday. We are long as this level has plenty of support.
USD/JPY – Active Signal
The USD/JPY is still beneath the 107.50 level and are still short. This range is quite tight at the moment, so hopefully, we can use that to our advantage.
BTC continues to trade in a tight range between $9,000 to $9,500.
An interesting development overnight was that a US-based investment firm has been given the go-ahead to launch a publicly listed crypto fund, representing both Bitcoin Cash and LTC. This is an important move to bring crypto into the mainstream as we shouldn’t forget this is an alternate investment class.