US Market Wrap

US markets opened the week relatively mixed, with stocks higher, but key risk forex pairs falling.

The decoupling was likely a result of the holiday weekend in the US and Canada that lacked the normal political bite that we have become accustomed to.

Earlier today, we’ve also heard that a key COVID vaccine trial from Johnson and Johnson has been paused due to a mystery illness from a participant and that appears to be lifting the USD and weighing on the risk trade.

The Data Agenda

Despite the slow start to the week, there will be some data points out today that we need to watch including US CPI.

Early on in the European session, the GBP/USD will be looking towards the latest jobs data which is still not making huge inroads just yet.

Meanwhile, the EUR/USD will likely react to German ZEW Economic Sentiment for October, which remains on a downward trajectory.

Over to the US and we will be seeing CPI due out today. This is going to be an interesting print as we go forward, as we know the FOMC is prepared to let this one run hot without moving on rates. That said, I can’t see any real threat of a runaway number any time soon. 

Forex Signal Update

The FX Leaders Team hit 1 winner from 1 trade yesterday, with one more finishing green this morning.

GBP/JPY – Pending Signal 

The GBP/JPY has been grinding up this trendline, but a fall under 137.00 could see a sharp fall and a potential short signal.

DAX – Pending Signal 

The DAX is still well and truly above the 13,000 level but appears to be capped with resistance overhead. We are still biased to the long side here.

Cryptocurrency Update

BTC has been pushing higher, ever since the break of the $11,000 level.

It does appear that the moves over the last 24 hours have been on light volume so that means the momentum is likely slowing down to some extent.