Forex Signals Brief for Jul 9: Markets on the Back Foot
Rowan Crosby • 2 min read
Markets were in the red yesterday as risk assets fell and there was a clear move towards the safe-haven assets.
Equity futures were on the back foot early on and that translated into selling for the bulk of the US session. We also saw more strength in the USD as a result, while GOLD is still holding above the $1800 level.
There was a clear focus on US bond yields as well as we saw the 10-year dump as low as 1.25% before rebounding.
In terms of data, we did see a slight uptick in jobless claims data, while the ECB showed that they are prepared to let inflation run, which is not really a big surprise given what we’ve been seeing elsewhere.
The Data Agenda
Most of today’s data will be out of the UK so we should expect a clear focus on the GBP/USD early. The main things to watch are the latest GBP and manufacturing production data points.
In the US session, we can look to Canada and their latest jobs data as well.
Forex Signal Update
The FX Leaders Team hit 3 winners from 6 trades in what has so far been a solid week of trading.
XRP – Active Signal
XRP has been testing the $0.60 level heavily in the past 24 hours and looks weak after breaking the triangle pattern as we can see below.
EUR/USD – Active Signal
The EUR/USD rallied on the back of the ECB minutes, however, it doesn’t appear there is enough momentum to break key resistance.
BTC has been weak over the past 24 hours and while price did bounce, it couldn’t get above the $33,000 level.
Like I’ve been saying for a while, the technicals look very weak at the moment and I would expect more downside ahead.