Forex Signals Brief for Aug 5: What Does the BOE Have in Store?
US Wrap
US Markets were a little shaky yesterday as we look towards the BOE in the upcoming session.
There were a few key headlines of note yesterday, that really moved the needle for a number of products. Firstly, we saw a very bad miss in the ADP jobs report, which might very well be an indication of what is yet to come.
Next, one of the Fed board came out and suggested they were ready to taper and look at interest rates, but not until 2023. Given the out of control inflation situation, not surprisingly, many took this as little more than a joke.
As such, we saw a big spike in GOLD only for those gains to be quickly smacked back down. While the Greenback ended the session by pushing back higher.
The Data Agenda
The main focus today will be in the UK as the BOE releases its latest interest rate decision.
The belief is they will continue to keep stimulus pumping despite similar inflationary issues there as well.
In the US, the weekly jobs data will be another key talking point, given yesterday’s ADP disaster and tomorrow’s NFP.
Forex Signal Update
The FX Leaders Team hit 4 winners from 9 trades, as we closed out many of our open positions.
XRP – Active Signal
XRP has once again found itself pushing higher along with the broader market and we will watch to see how this little pump plays out. We remain long.
EUR/USD – Watching
The EUR/USD firmly rejected the 1.1900 level, but we will watch the USD for more of an indication of whether it can mount another challenge.
Cryptocurrency Update
BTC has rebound quite strongly yesterday as the buyers stepped up and held the $38,000 mark.
For now, it appears that we are looking at another test of the 40,000 level as well.
All the talk over the past few days has been surrounding the commentary from SEC Boss Gary Gensler, who is suggesting he will be looking closely at regulation – in particular stable coins such as USDT and USDC.