US Wrap

Markets were soft ahead of an all-important meeting of the FOMC today.

The SPX softened as traders appear set to wait and see what Powell and Co, have in mind for the future of interest rates and QE.

Interestingly, the USD has dropped away from its recent highs and has also broken through the uptrend, which is a bearish sign in the short term. That said, the FOMC will trump any technical signal.

Elsewhere, we continue to see weakness in the metals as GOLD tries to hold the $1,800 level.

Bitcoin continues to be a big focus across the board. We are continuing to hear more and more about regulation as Shain pointed out yesterday, while we also heard that the former SEC boss is launching a Bitcoin ETF. Ironically, this was the same person who bought the SEC case against Ripple.

The Data Agenda

The FOMC is really all that matters today, with most focused on whether the QE will ever end and what will come of interest rates.

However, there are a few wild cards that I’m interested in. The crypto regulation is something I’ve been talking about for many months now and it feels like the scene is set for the Fed boss to drop a bomb about this. Similarly, we could even hear about the potential for a CBDC, which might even go hand in hand with regulation.

I’m also keeping an eye out for what the Fed is doing with the likes of GOLD. We are also hearing stories about many central banks hoarding gold which to me would suggest they have got some other plans in mind going forward.

Forex Signal Update

The FX Leaders Team hit 4 winners from 5 trades, as the team are putting together a very impressive week to date.

XRP – Active Signal

XRP has been looking very strong recently and the $0.60 level has held well. We’ve been hearing speculation that there will be some big XRP news this week, such as a Coinbase relisting or news on the SEC. But clearly, this is just speculation, so I’m not getting too caught up in that just yet.

AUD/USD – Active Signal

The AUD/USD is clearly trending lower and we are back in another short position. We have strong resistance above at 0.7400.

Cryptocurrency Update

BTC is back looking like it wants to test the $40,000 level.

Is this a dead-cat bounce or is there genuine buying here? With all the regulation news we keep hearing about, I wouldn’t like to be buying at this point in time.

But we should watch this level with interest.