US Market Wrap

Markets pushed higher on Tuesday as the USD fell ahead of the next meeting of the FOMC.

The upside in equities was down to more stimulus talks, however, there is a fair case to argue that money is parking in stocks due to lack of better options, with the state of most Government bond markets looking very bad.

The main data points yesterday came from the UK, with a dire employment situation continuing to get worse. We saw the jobless rate jump to 4.9%, but we have seen 819K jobs lost in November and that was before the latest set of lockdowns began. Johnson continues to do his best to bring the UK economy to its knees.

The Data Agenda

Today’s main focus is all about the FOMC and exactly what they might say about the level of bond buying.

In reality, the only weapon they have left is to keep the QE rolling as thick and fast as they can. The expectation is that the Fed will stick with its $120 billion-a-month pace of buying up MBS and U.S. Treasuries, however, they will likely suggest they can do more if required. In the US, there is a real war going on between states which are looking to open and those that want to shut up shop completely. The bond buying can only paper over the cracks for so long.

Earlier in the session, the GBP/USD will look towards more data today including some PMI prints and CPI. But as mentioned, there appears little hope for a recovery in the short-term. Ironically the Pound is pushing to the upside, thanks solely to the falling USD.

Forex Signal Update

The FX Leaders Team finished with 1 win from 2 trades as risk assets bounced.

Make sure you follow our live signals as volatility could increase post-FOMC.

LTC – Active Signal 

LTC failed at the $85 level yesterday, but longer-term he price action remains bullish.

Silver – Active Signal 

The weak Greenback is helping to prop up the commodity space and SILVER pushed higher yesterday as a result.

Cryptocurrency Update

BTC is moving higher, albeit it very slowly. We remain bullish on the entire crypto space and as mentioned, I suspect a run at the record highs will happen any day.

Whether the $20,000 level can hold is another question, but a test is very likely.