US Market Wrap

US markets will be looking out for the latest PPI print today as markets are likely coming to the realisation that there will be no stimulus in the US before the election.

The main theme of recent times has been the back and forth in the US between the political parties, but it is clear the stalemate will likely remain. That sentiment weighed on markets and saw the USD get a bid.

Even some good earnings results from some major US banks weren’t enough to lift equities and risk assets and that weak sentiment set the tone for the session.

The Data Agenda

Data remains thin on Wednesday with the highlight likely to be US PPI.

Outside of the data, there are a few central bank speakers starting early on with ECB boss Christine Lagarde which will impact the EUR/USD. We’ve heard quite a bit from her lately.

Later in the US, the FOMC speakers start to get rolled out however, we are not seeing much new information just yet, with similar themes still.

Forex Signal Update

The FX Leaders Team finished with 3 wins from 3 trades as volatility increased with risk assets falling.

USD/CAD – Active Signal 

The USD/CAD has soft of recent times and even with yesterday’s bounce price didn’t jump that much. As such, we are short, looking for more downside.

DAX – Pending Signal 

The DAX got hit right back down to the 13,000 level but price held. This could be an opportunity for a long signal if the buying holds up.

Cryptocurrency Update

BTC is holding steady and looks like it is back in a period of consolidation.

I really like these volatility contractions as they invariably lead to breakouts. For now, let’s watch the recent highs and lows for a break in either direction.