US Market Wrap

All the focus yesterday was on the FOMC and sure enough, markets are turning to risk-off mode now that the meeting is behind us.

The Fed made it clear that ultra-low rates will likely be in place for the next 2-3 years as they try to stoke some level on inflation. They, of course, are targeting that 2% which we haven’t really seen threatened for some time.

On the back of the FOMC, money is now flowing back towards the USD and away from risk assets, which suggests there are some that are seeing this as a sign things are still a little way off improving just yet.

The Data Agenda

It is a very busy day ahead, and markets are already very active. We will be seeing the BOJ come out with its latest decision while late in the day we also hear fro the BOE.

While there will almost certainly be no changes to official rates, the outlook is what matters most at the moment. As we’ve already seen, with no hopes of a rate hike or inflation increasing any time soon, some might be thinking the recovery will be a slow one.

In terms of actual data, we get to see Eurozone CPI early in the day, however, much of the focus is again in the US.

Thursday means its jobless claims, with the hope that this number can finally pull back and stay under 1 million. There is also Philly Fed Manufacturing and Building Permits, in what is shaping up as a massive day for traders.

Forex Signal Update

The FX Leaders Team closed one signal in the red yesterday as the price action reversed heavily. 

EUR/USD – Pending Signal 

The EUR/USD is now under 1.1800 and on the verge a sharp fall. If support breaks here lookout for a short signal.

Gold – Pending Signal 

GOLD is going to be one to watch in the next 24 hours with the USD rallying and risk-off firing up. A break above the recent high could be a trigger for a long entry.

Cryptocurrency Update

BTC should be looking shaky given we are seeing risk-off today, but price is actually holding up well. In fact, we’ve seen a test of the $11,000 level.

I suspect a failure could lead to a sell-off so this is another to watch going forward.