Yesterday’s Market Wrap

Yesterday was another positive day for risk as the sentiment improved and remained positive throughout the day. The Bank of England committed to buying $5 billion in UK gilts at each reverse auction, which has been keeping markets calm. The Swiss CPI inflation posted a decline last month, relieving some of the pressure from the SNB.

In the evening the US ISM manufacturing report came out and showed that the activity slowed last month. This was enough to send the USD lower, which has been showing signs of exhaustion recently. It is reluctant to go up when the data has been positive, and it tumbled after the soft ISM report. This shows that the USD might have reached a top for the time being and we will probably see a retreat as the data softens.

Today’s Market Expectations

Today started with the Reserve Bank of Australia (RBA) delivering yet another interest rate hike of 0.50%, which was the sixth hike in a row. The PPI (producer price index) is expected to show another increase in the Eurozone, from 4.0% to 5.0% which will continue to keep the CPI increasing. JOLTS job openings are expected to show a slowdown later in the afternoon, while a number of central bankers are on the agenda to speak as well.

Forex Signals Update

Yesterday the volatility was not too high, although there was a sudden move in the afternoon as the USD tumbled lower after the US ISM manufacturing numbers. We were caught on the wrong side with a number of trades, not epecting such a rection in the USD, although w had already made some profit during the first part of the day.

Remaining Long on [[USD/JPY] 

This pair has been bullish since early this year, although after the intervention from the BOJ it has stabilized and it has been trading in a range. We havee continued to remain long, buying the pullbacks lower. Yesterday we opened two buy signals, the first closed in profit wile the second hit the SL target as the USD retreated. Although the 200 SMA held as support on the H1 chart.

WTI Oil – H1 chart

GBP/CHF Breaking Above the 20 SMA

The pair has been on a downtrend which picked up pace in recent weeks, although we saw a reversal higher after the BOE ionterventioon in the bond market last week. My colleague decided to open a sell siganl at the 20 SMA (gray) on the daily chart yesterday, trying this moving average, but the price popped higher after the decline in the Swiss CPI inflation.

XAU/USD – Daily chart

Cryptocurrency Update

Yesterday the sentiment remained positive which benefited the cryptocurrency market, since it is trading as a risk market now. Main crypto coins made some decent gains yesterday although thy still remained within the range, so there’s no really any direction at the moment.

BITCOIN Remains Below MAs 

Bitcoin continues to trade in a tight range for two weeks after falling below $19,000 last month. A support zone formed around the $18,500 level, where we have been buying BTC/USD. At the top, moving averages are acting as resistance so a wedge is forming on the daily chart, so we will see if there will be a breakout and in which direction.

BTC/USD – Daily chart

RIPPLE Finding Support at the 20 SMA

Ripple surged higher last month as the sentiment improved after the developments with the court case against the SEC in the US, which will be an industry-defining process. It popped higher above the 200 SMA (purple) in the daily chart, with the 20 SMA (gray) turing into support.

XRP/USD – Daily chart