US Market Wrap

There was a clear flight to safety and away from risk assets yesterday as the current market sell-off continued.

With US traders back after their long weekend holiday, it was the same sort of price action we saw to end the trading week.

Prices fell hard across the board with the SPX, WTI and commodity currencies such as the AUD/USD being the hardest hit.

There wasn’t really any news that caused the selling, it simply looks like a combination of profit-taking in some of the major tech players as well as changing sentiment across the board.

The Data Agenda

While the key theme at the moment is risk-off, we will all be watching today’s BOC interest rate decision.

The BOC is widely expected to leave interest rates unchanged at 0.25% and maintain the current rate of bond purchases of at least $5 billion per week. While the data has been improving, it is expected that the BOC will continue to reiterate that it will be a rocky road ahead.

The USD/CAD has already been an interesting trade in the last 24 hours and saw a big spike higher yesterday. With oil falling and risk on the nose, there could be some more to play out for this one.

We also get WTI crude oil inventories which come on the back of some EIA news and global supply talks, so it could be a big day for oil traders.

Forex Signal Update

The FX Leaders Team hit 3 winners from 5 trades in what was another wild session in both the majors and commodities. 

Make sure you follow our live signals as volatility is rising, which means there are great opportunities for traders.

GBP/USD – Active Signal 

The GBP/USD has seen a pretty big sell-off in the last few sessions. There were a few headlines weighing on price, but risk is also getting hit. We are looking for a quick bounce play off what is a big level at 1.3000.

USD/JPY – Active Signal 

The USD/JPY is coiling tightly in this range, despite a bit of a sell-off thanks to money flowing into the JPY. We are hunting a short here if price breaks out to the downside.

Cryptocurrency Update

The selling was strong yesterday, but BTC has managed to hold up at the$10,000 level.

This is an important development as Bitcoin was strong when other risk assets were weak. So this suggests when the bounce comes, we could see outperformance to the upside.

That said, if $10,000 breaks, then look out below. So far so good for the bulls thorough.