Forex Signals Brief for Oct 12: Stimulus Talks To Dictate Market Tone

US Market Wrap

US markets ended the week on a high note, and across the board, risk assets saw strong buying.

The USD/CAD  saw a move towards the risk side, thanks to a better than expected jobs report, while the positive undertones drove the other commodity currencies higher as well, including the AUD/USD and NZD/USD.

The last week has been dominating by ups and downs as politics around US stimulus talks continued to dominate. At this stage, it appears unlikely that a deal could be stuck ahead of the November US election, but that is something Trump might be hopeful of.

The Data Agenda

Trying to move away from politics and stimulus for now and the data calendar is relatively thin this week.

One thing to look out for might be moves in US stocks as we get earnings season underway. For data points, the main ones of note are US CPI, PPI, retail sales and jobless claims on Thursday.

There are a couple of other key events to watch out for as well, including a meeting of the IMF, while the latest Brexit saga continues to roll on.

There are also a host of Fed speakers across the week, however, we haven’t heard much market-moving information from them in the last week or so.

Forex Signal Update

The FX Leaders Team hit 12 winners from 19 trades for a 63% strike rate as the guys put together a strong week.

If this type of price action continues, keep watching the forex signals page as volatility will be high in the lead up to the US election.

USD/JPY – Active Signal 

The USD/JPY has held under the 106.00 level and we’re short, looking for price to drop

DAX – Pending Signal 

The DAX has broken above the 13,000 level and is looking bullish. If that tone continues we are looking for a long signal.

Cryptocurrency Update

BTC perfectly broke out of the triangle pattern that we were monitoring last week and has importantly, held the $11,000 level.

Once again Bitcoin has shown that it loves the technical patterns and this bullish move could mean another test of $12,000 is one the cards this week. This will drag the likes of ETH and XRP higher as well.