Forex Signals Brief for Oct 19: Stimulus Still the Headline Act
Rowan Crosby • 2 min read
US Market Wrap
US markets were mixed to close out the week and the same themes we’ve been hearing about – namely stimulus – looks set to continue.
Friday did see some good retail sales data from the US, but overall markets weren’t biting. At the same time, Brexit hopes took a turn for the worse and it appears there is plenty of work still do to make any progress.
The majors did make some gains early on, before giving most of those up in what was a quiet session to round out the week.
The Data Agenda
If it feels like deja vu, then the reality is that it is just US politics at the moment.
All the talk this week continues to be around a US stimulus package and the only hope at the moment is that the Government officials pass a watered-down bill in the $300 million range – a far cry from what the democrats want. It might just be the last chance to get something done prior to the election.
Data wise, things are a little light on this week, which will put more attention on the likes of earnings season, Brexit and of course stimulus and the election.
That said, we look to US jobless claims once again as the main release while there are a few top-tier data points from each of the majors.
Forex Signal Update
The FX Leaders Team hit 10 winners from 13 trades for a 77% strike rate in what was a slow-ish week for the guys.
Make sure you follow our live signals as we will likely continue to see similar price action as the main themes remain the same for the time being.
AUD/USD – Active Signal
The AUD/USD was soft to end the trading week, however, the early signs this week are positive. Despite some mixed Chinese data, we are still seeing a bid. That said, we remain short with the prospect of another interest rate cut increasing by the day.
USD/JPY – Active Signal
The USD/JPY is still grinding lower and we remain short here, looking for some more downside to come.
BTC continues to coil and we can see a smaller triangle/flag pattern starting to form here. As we know this does lead to breakouts.
I am still looking for that upside break and a move to $12,000.