US Market Wrap

US market managed to shrug off the negative sentiment and finished the session green on the day.

Fears remain around the likelihood of further COVID cases and what that will mean for the global economy going forward. While most countries continue to wind back restrictions, the US and China and the most in focus, given their populations and economic power.

That said, the SPX still managed to close in the green, while the Greenback’s gains of last week have been pulled back. 

News that the FOMC will look to ramp up purchases of corporate bonds was a big boost to confidence and the fact that markets closed higher, was likely down to that alone.

The Data Agenda

We have a fair bit on our plates today as the data is really starting to ramp up and for the most part, the numbers are on the improve.

First to the UK and the GBP/USD, where we get a look at the state of employment at the moment. The number of new claims are falling which is what the markets will want to see.

Then over to the EUR/USD and we have German ZEW economic sentiment which is on the rise. The expectation is for 60 here which is a big improvement.

Later, US Retail sales are going to be out in the US session and this will likely be the big market mover of the day. This number has also jumped to 8% from -16% so that sums up how things have changed as lockdown measures ease and sentiment lifts.

We also hear more from Jerome Powell today as he testifies to Congress, which comes after the news of more corporate bond-buying really boosted markets yesterday.

Forex Signal Update

The FX Leaders Team hit 3 winners from 5 trades yesterday, for a 60% strike rate to open the new week.

Gold – Active Signal

GOLD has continued to run into trouble at key resistance and as such we are short looking for some downside.

Oil – Pending Signal

WTI is consolidating between $35 and $40 and we are looking to buy it above that support for the time being.

Cryptocurrency Update

BTC remains range-bound between the $10,000 level above and $9,000 below. This is the same story as most of the major trades we are following at the moment. Clearly, most asset classes are consolidating at the moment with a bit of a wait and see approach.