Forex Signals Brief for Aug 5: First Look at US Jobs
Rowan Crosby • 2 min read
US Market Wrap
US equity markets are still in the midst of earnings season and some up and down results have been impacting sentiment this week.
Yesterday, the soft numbers were counteracted by hopes of a stimulus package making its way through the Government web. Time is slowly running out as the summer break for the politicians is scheduled for Friday – which might be just what both sides need to get a deal done.
While equities did rise, the real story of the session was once again GOLD. The yellow metal pushed through the $2,000 level and is still very much bullish at the moment. With a weak USD and plenty of nervous investors, it’s hard to see this one slowing down just yet.
The Data Agenda
After a quiet start to the week, the key data points are finally starting to come out.
Early in the US session, we get some PMI data out of the Eurozone, Germany and the UK, which will keep the GBP/USD and EUR/USD busy.
When the US session rolls around there will be a few data points that will likely be very market moving. The main one is probably the ADP jobs number. This, of course, is the private survey ahead of Friday’s non-farm payroll report. We’re already hearing some wide predictions for this months number, so keep an eye on the ADP report as this has been giving us a reasonable indication.
At the same time, we also look to ISM non-manufacturing PMI, which could well move markets itself.
Finally, WTI will be in focus for the next update of oil supplies in the US with the weekly storage data due for release.
Forex Signal Update
The FX Leaders Team hit 2 winners from 4 trades yesterday, as we’ve had a pretty busy week in terms of opportunities.
Gold – Pending Signal
GOLD has been a trade to watch recently and sure enough after time tight coiling the big move came. For now, price is bullish, but there are a few technical analysts suggesting the yellow metal is now overbought.
NZD/USD – Active Signal
The NZD/USD has been relatively range-bound lately and we can see a fair bit of resistance above. Despite the green so far today, we are short looking for this one to run out of steam.
Little has changed overnight in the crypto space with BTC still above $11,000 for now and ETH under $400.
That said, it looks like Bitcoin is making a series of lower highs which is classic price action after a big break out. If $11,000 does fall, expect some follow-through.