US Market Wrap

Markets opened the week strongly but could be getting set for some volatility in the coming days on the back of the US Presidential Debate.

Despite gaining ground in the last few session, September has not been a good month for risk assets and it’s highly likely we’ll see lost ground come the final day of the month.

On the forex side of things, the GBP/USD gained on hopes of some ground being made with Brexit negotiations, while the AUD/USD pushed higher after a backflip from some of the local banks on the belief there will be a rate cut at the October meeting of the RBA.

The Data Agenda

The data is quiet on Tuesday and much of the attention will be on Trump and Biden in the first Presidential Debate.

Markets are pricing in a Biden presidency (57%), which is reflected in the latest polls, where he holds a 7 percentage point lead. That said, we heard this last time as well and as we know, Trump’s victory shocked markets and the led to a massive rally in stocks.

From a data perspective, the main number of note will be US consumer confidence, which is looking like it will show an improvement to 89.2 up form 84.8. Clearly, this number is linked to how the US is faring in its battle against COVID-19.

Forex Signal Update

The FX Leaders Team closed one signal in the red yesterday, however, we have four open signals at the moment so there is plenty happening early in the week.

Make sure you follow our live signals as we could see some action on the back of the debate.

USD/CHF – Active Signal 

Right on queue, the USD/CHF reversed its little rally and price is looking like it wants to fall back into that long-term range. We are still short.

AUD/USD – Active Signal 

The AUD/USD has been a massive mover in the last few sessions and has been breaking higher. That said, 0.7100 held up really well and we remain short here looking for some downside pressure to come.

Cryptocurrency Update

BTC has seen some selling pressure come in to start the week and the major coins are also following suit.

Price fell away from the $11,000 and never really mounted any form of a charge towards that point after it did threaten to. In reality, the early moves higher were likely on low volume and with little genuine buying behind it.