Forex Signals Brief for Oct 28: BOC Ahead
Rowan Crosby • 2 min read
US Market Wrap
While stocks ended marginally lower, the USD also fell and some key risk trades such as the NZD/USD did perform strongly.
That said, we are seeing a markets ebb and flow and with news that there could be more lockdown measures across Europe and in parts of the US, that is almost certain to weigh on market sentiment.
The Data Agenda
There is little by way of top-tier data today, but much of the attention for forex traders will certainly be on the BOC.
Like most economies at the moment, Canada has record low interest rates and there is little change likely at this meeting. What we are expecting to see is that outlook continuing to improve, certainly in comparison to what many economists had been predicting.
That said, we should expect to hear the BOC suggesting low rates are here to stay for a number of years until the economy is well and truly back on its feet.
Finally, oil traders will be looking for the latest WTI crude oil inventory data. Oil is still hovering around that $40 level and is still a long way from the highs.
Forex Signal Update
The FX Leaders Team hit 6 winners from 7 trades yesterday, in what was a strong session for the guys. We had a number of open positions which nearly all fell our way.
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.
EUR/CHF – Active Signal
Not much has changed for the EUR/CHF as price holds under key resistance. We remain short here.
USD/CAD – Active Signal
The USD/CAD is still holding higher despite retracing. We’re short headed into the BOC today, but I don’t expect a large response.
As we suspected it would BTC has broken out of the triangle pattern and is still very much bullish.
Price held above the $13,000 level which was strong from a technical level, while the catalyst was a fundamental one, with the PayPal news. For now, we remain long-biased and look for more upside.