Forex Signals Brief for June 7: US Inflation Fears
Markets ended the week on the front foot as most of the attention this week will be on US inflation.
US Wrap
Markets ended the week on the front foot as most of the attention this week will be on US inflation.
Interestingly, the week closed with a strong non-farm payrolls number, however, it did miss expectations, which has been a trend of recent months.
Interestingly, we are seeing some wage growth and coupled with inflation that is out of control, we continue to look to what policymakers have in store. If inflation continues to be a worry, I would expect to see more strength in GOLD and SILVER in the weeks ahead.
The other key themes of last week were the big run-up in the meme stocks, particularly AMC, so whether that can continue will be another question. Whenever these meme stocks like GME run, invariably it is followed by a stock market correction.
The Data Agenda
As mentioned, the real focus this wek will be on the state of US inflation. With the cost of most goods and particularly things like commodities and building products rising dramatically, it’s clear that inflation is well and truly out of control. Will another high number at least make the FOMC think a bit harder?
Similarly, we will hear from the ECB this week and while inflation is rising in Europe as well, they obviously have a long history of lacklustre growth. Nevertheless, the forecast for what lies ahead economically will be of great interest.
Forex Signal Update
The FX Leaders Team hit 9 winners from 14 trades last week for a 64% strike rate, with plenty of action in the majors.
We have eight open signals at the moment, so look to the forex signals page for all the latest developments.
XRP – Active Signal
XRP remains under the $1.00 level but has managed to bounce this morning. We still wait on more info out of the SEC.
ETH – Active Signal
The ETH price broke nicely to the upside yesterday but has quickly given that back this morning.
Cryptocurrency Update
Bitcoin is back in the green this morning and is recovering from the latest round of Elon Musk Tweets.
Over the weekend there was the Miami Bitcoin Conference, which doesn’t appear to have done much to silence the critics.
Technically, price is going to need to take out the $38,000 level, which is the latest swing high.
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