BOE in Focus

Forex Signals Brief for Aug 6: BOE in Focus

Posted Thursday, August 6, 2020 by
Rowan Crosby • 2 min read

US Market Wrap

US markets continued the recent trend of grinding their way higher, despite what the economic data might be suggesting.

The ADP jobs number missed the forecast quite badly and there should be some concerns that this will reflect badly on what might happen on Friday. Nevertheless, the SPX kept on moving up and the USD continued to fall. The moves also come on the back of hope of stimulus, which is still at the crossroads for now.

The soft Greenback is helping boost the likes of the EUR/USD and also key commodities such as WTI and GOLD. The yellow metal appears to have no end in sight just yet and the bulls are well and truly in control.


The Data Agenda

It appears that we are going to have an interesting session ahead with US jobs and the BOE the two key events of the day.

Early on, the attention is well and truly on the BOE and the GBP/USD. The reality is that the BOE is unlikely to make any radical changes, however, there is a growing belief that they might signal there will be more stimulus ahead – perhaps at the end of summer. When Governor Bailey speaks we will know more. Construction PMI will be out a little later, but that might be overshadowed today.

For the EUR/USD there will be some key German data to watch out for, with June factory orders looking like they are holding steady.

Over to the US session and because it’s Thursday means we will look again to US jobless claims. This has been a good indicator of what is going on, in that the number of claims just can’t drop at the moment. It could be a precursor to what we see with tomorrow’s NFP.


Forex Signal Update

The FX Leaders Team hit 2 winners from 4 trades yesterday, as risk-on continues to be the trade at the moment.


Gold – Pending Signal

GOLD continues to look very strong since claiming the $2,000 level. With a falling USD, the bulls appear to be in control for now but don’t discount a pullback headed into the weekend.

Gold – 240min.


EUR/USD – Pending Signal

The EUR/USD remains strong and is knocking on the door of 1.1900. A break above that level will be very bullish and an opportunity for a long signal.

EUR/USD – 240min.


Cryptocurrency Update

BTC broke out of the downtrend and for now has pushed away from the $11,000 level. In reality, it is now staring at a test of $12,000.

ETH is under $400, but as Bitcoin gains steam, that will translate into strength to the other major crypto’s.

BTC – 240min.
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