Forex Signals Brief for Sep 7: Sentiment Remains Soft
Markets had a few soft sessions in a row to close out the trading week, despite the strong result we saw with the latest employment data.
US Market Wrap
Markets had a few soft sessions in a row to close out the trading week, despite the strong result we saw with the latest employment data.
US non-farm payrolls put in a solid month, with around 1.4 million new jobs created while the unemployment rate fell to 8.4%. Interestingly, the result wasn’t enough to help markets close the week green.
Equities and risk assets such as the AUD/USD have been selling off, led mostly by the big tech stocks that had been on a massive bull run. It’s also likely that there was a degree of selling ahead of the US long weekend holiday today, which is something we often see.
At the same time, it does appear that the USD has finally found a little bit of support after a number of weeks where it has only seen red.
The Data Agenda
After a fair bit of focus on the US in recent weeks, attention might finally move to some of the other central banks.
This week we will be hearing from both the BOC and ECB, so there will be added attention on the USD/CAD and EUR/USD. As we’ve been seeing in recent times, the outlook is more important than anything with interest rates already sitting at record low levels. That said there could be more stimulus ahead.
However, we won’t be able to avoid the US entirely as we will be getting the latest CPI print. This is likely to be highly anticipated on the back of the recent changes to the way in which the FOMC will interpret inflation. It’s also unlikely that CPI is going to get anywhere near the 2% target any time soon.
Finally, we could also see a few more Brexit headlines coming back once again as the negotiators are once again heading back for more talks.
Forex Signal Update
The FX Leaders Team hit 6 winners from 13 trades in what was a relatively quiet week for the guys.
If the selling continues, keep watching the forex signals page as volatility will be high.
EUR/JPY – Pending Signal
The EUR/JPY is holding a pretty steady range at the moment and we can play off both support and resistance. At this stage, we are looking to buy the dip.
EUR/GBP – Active Signal
The EUR/GBP is still drifting lower and so far holding this downtrend. We remain short for the time being.
Cryptocurrency Update
The selling in risk assets has certainly taken its toll on the major crypto’s, with both ETH and BTC getting absolutely hammered last week.
BTC has fallen all the way to the $10,000 level and has so far found support. That region might even represent a buying opportunity, simply because you could cut any trade quickly below that key level.
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