Forex Signals Brief for Jan 5: Georgia Runoff Elections Unsettle Markets

US Market Wrap

Markets have started the week on the back foot as money started flowing towards the safe-havens.

The SPX tumbled, falling -1.5%, while GOLD rallied through $1900 to as high as $1940. BTC was incredibly volatile as it pushed to $25,000, before falling to $28,000 and finishing up in the middle.

The focus is now on the Georgia run-off elections, where Republicans need to win both races to maintain control of the Senate. Should they lose, then the Democrats get free rein over both houses.

And of course, most attention of all is on January 6th, when Congress meets to vote on the outcome of the electoral colleges. There is much focus on the role of Vice President Mike Pence as he has the power to overrule the votes from the fraudulent states. Whether he does the right thing or not is the big question and the stakes could not be higher.

The Data Agenda

The main data point today is likely to be German Unemployment change which should see a 10K increase.

In the US, we get ISM Manufacturing PMI, however, all the focus is on the elections.

Forex Signal Update

The FX Leaders Team hit 1 winner from 4 signals yesterday, with volatility on the rise.

Keep watching the forex signals page as there could be plenty of action given the newsflow at the moment.

USD/JPY – Active Signal

The USD/JPY bounced yesterday and that was a great opportunity for another long signal.

Gold – Watching

GOLD opened up above $1900 and pushed to $1940. We should see more upside ahead as uncertainty is on the rise.

Cryptocurrency Update

BTC ran to the $35,000 level, but those gains didn’t last long as price tumbled back to $28,000, before bouncing.

While we remain bullish on Bitcoin, we should expect the wild ride to continue.