US Market Wrap

US markets finally managed to make it back to record-high levels, as the S&P 500 crept through the high watermark.

That said, the move was lacklustre at best and I’m sure there are many investors out there who feel that there is likely limited upside at the moment, with plenty of downside risk.

The situation is in reverse for the USD after we saw the US Dollar Index (DXY) plummet through the lows, which in turn propped up the majors.

The Data Agenda

After what’s been a relatively quiet week on the data front, traders will have a couple of key things to look out for.

Early on in the day, we will be getting CPI prints from both the UK and Eurozone, which will put the attention on the GBP/USD and EUR/USD. While later on, the USD/CAD will be watching a CPI print of its own.

During the US session, the main focus early will be on the resurgent WTI as we get the latest crude oil inventory levels.

However, the real focus of the session comes later, when all the interest turns to the FOMC minutes.

Interestingly, the FOMC noted that the recovery might have stalled to some degree as infections keep rising, however, there are some good news stories in the various states. With that in mind, we will likely hear the dovish tones remaining for now, with near-zero rates and the QE printing press continuing to roll. The interest is clearly in the outlook and anything, either bullish or bearish, will be enough for markets to latch onto. 

Forex Signal Update

The FX Leaders Team hit 4 winners from 6 trades yesterday, as we build into a solid week.

Make sure you follow our live signals as the week is shaping up nicely.

USD/CAD – Active Signal 

The USD/CAD has been trending to the downside really nicely and all pullbacks are getting sold into. This is a good short opportunity at the moment and we are looking for more downside.

Gold – Pending Signal 

GOLD tagged the $2,000 level yesterday and is getting a helping hand from a very soft USD. This is a trade to watch as volatility is high.

Cryptocurrency Update

The party in BTC appears to be short-lived after price broke down back through the $12,000 level. The trendline is still in-tact, so we can’t write this break off just yet.

ETH on the other hand remains above $400 and strong for the time being.