Forex Signals Brief for Oct 7: FOMC In Focus - Forex News by FX Leaders
FOMC Ahead

Forex Signals Brief for Oct 7: FOMC In Focus

Posted Wednesday, October 7, 2020 by
Rowan Crosby • 2 min read

US Market Wrap

US President Donald Trump was out of hospital yesterday and back making waves in the financial markets.

The big news was when Trump announced he would be withdrawing from stimulus negotiations until after the election. This wasn’t what markets wanted to hear and risk assets fell away sharply on the news.

Many are asking whether this is a clever election ploy or simply Trump at work as a master deal maker. Either way, this will likely weigh on markets further in the short-term.

The Data Agenda

Data once again is light today, but the important release will clearly be the FOMC minutes which is due out late in the US session.

Much of the last meeting was focused on the changing inflation target, which is likely to see the rate of inflation overshoot before the FOMC will act. While it is a talking point, inflation overshooting is not something we are expecting any time soon, so the reality is that we will be seeing low rates for an extended period of time.

Meanwhile, we will also be getting a host of FOMC speakers as well, all of which will be discussing further stimulus and the potentially the outlook.

 

Forex Signal Update

The FX Leaders Team finished with 4 wins from 6 trades as volatility increased on the back of Trump’s comments.

If the selling continues, keep watching the forex signals page as volatility will be high.

 

GBP/JPY – Pending Signal 

The GBP/JPY has been edging higher but is now on the verge of breaking through this trendline. That’s bearish and could be the trigger for a short signal.

GBP/JPY
GBP/JPY – 240min.

 

DAX – Pending Signal 

The DAX is still relatively range-bound at the moment but has strong support below. Any weakness might be a buying opportunity.

DAX
DAX – 240min.

 

Cryptocurrency Update

BTC fell away yesterday, in line with other risk on plays and is still stuck between the $11,000 level above and support and $10,000.

Until one of those levels gives, there is little to do for the time being, short of trading the range. That said further weakness. could break this uptrend and cause price to test that lower support.

BTC
BTC – 240min.
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments