Forex Signals Brief for Oct 8: Markets Follow Trump’s Lead
Rowan Crosby • 2 min read
US Market Wrap
US President Donald Trump made it known that he was withdrawing from stimulus negotiations until the election, however, that sentiment didn’t last for long.
After initially Tweeting about not moving forward, hours later he suggested that perhaps there are some things he does want passed.
The market were stronger in the US as sentiment improved on the Trump Tweet and really all we are seeing at the moment is risk sentiment, linked very closely to Trump’s Twitter account.
The Data Agenda
Data will once again play second-fiddle to any Trump comments and the ongoing leadup to the election.
That said, there are some things of note today. For the EUR/USD we get the latest ECB meeting minutes, but that is not really a market mover at the moment as we don’t really expect any new insights.
Later in the US session, we are back looking at the weekly jobless claims data. This number is ever-so-slowly creeping down and markets would like to see this drop under 800K this week.
Forex Signal Update
The FX Leaders Team hit 3 winners from 3 trades in a day that was driven by President Trump and stimulus talks.
Make sure you follow our live signals as we could see some action if Trump keeps Tweeting.
USD/JPY – Active Signal
The USD/JPY has popped up through the downtrend, however, we are short and think that resistance will hold here.
DAX – Pending Signal
The DAX is drifting higher on a shorter-term timeframe and could be looking to test the recent highs. Keep an eye out for a possible long signal.
BTC hasn’t been doing much at the moment and that is evident on the charts, where we can see that price is making a triangle-type pattern.
What this tells us, is that volatility is contracting and that is often a precursor to a breakout. For now, there is nothing to do, but start watching this triangle and when one of the trendlines break, that could be an opportunity.