US Market Wrap
Yesterday saw another major demonstration in US equities as appetite for risk continues to grow at present.
As social distancing measures across the globe are winding down, we are certainly beginning to see some serious flows to risk values. From a forex perspective is AUD / USD. NZD / USD and USD / CAD have been strong artists this week.
We saw a great improvement in the job situation in the US ADP numbers that show a far less job loss than many expected. However, there was some skepticism from the experts as the number does not really match what we see of unemployed claims.
That EUR / USD will be the one to be seen in European trade today as we look towards the ECB’s recent meeting.
What we have seen this week is that other central banks such as BOC and RBA have not been looking for any significant changes in policy. The regulations are certainly as low as they could go, but that doesn’t stop speculation about negative rates. That said, the expectation is that The ECB will seek to scale up the stimulus.
The other interesting data point today will be the weekly American unemployment claims. The situation seems to be improving this week, with new demands now falling below the 2 million mark. While continuing demands are finally turning the corner.
After yesterday, ADP number, there is hope that we can see a better result today and tomorrow’s NFP.
Forex signal update
The FX Leaders Team hit 4 winners from 5 trades yesterday as the guys build a strong week.
Be sure you follow our live signals since this could be in another couple of busy sessions.
Gold – pending signal
GOLD has finally withdrawn after resisting a sharp increase in risk appetite recently. That said, while the price is over $ 1700, this is still bullish, and an area we are looking to buy into.
Oil – pending signal
WTI is above the $ 35 level and bullish, and we are still looking at the long-term options. This small withdrawal in price might be that option.
The fireworks in BTC may have already happened as the price is now below the very important $ 10,000 level.
For now, we are probably just looking at playing the range between $ 8,500 and $ 10,000 as this seems to be “fair value” at the moment.