Posted Tuesday, June 23, 2020 by
• 2 min read
US Market Wrap
US markets opened the week in the green, but fears around the US-China trade deal will likely be the story of the day.
Yesterday, equity markets put in a positive session, with the likes of the NASDAQ again printing new highs. While the USD finally had a bit of weakness after seeing a sharp bounce off the lows.
The main data point of the day was US home sales which dropped to their lowest level in more than 9 years. Otherwise, markets had been sticking to the consolidation pattern that we’ve been seeing for a few weeks now.
The Data Agenda
Despite a quiet time on the data front recently, markets could be set for a shakeup on Tuesday as some US-China trade deal headlines have been making the rounds.
News that White House trade adviser Peter Navarro has told Fox News the ‘trade deal is over’, has been weighing on markets early in Asian trade. The likes of the AUD/USD and other key risk assets are down sharply.
To this point in time, we have not heard anything from President Trump and we will need to wait for confirmation. But if there’s truth to this one, we could see a big fall ahead.
Elsewhere, we actually do have a busy day of data out of Europe. The main data point for EUR/USD traders is German PMI, which is slowly on the improve.
Then for the GBP/USD, we will look to a host of PMI readings, ahead of BOE Governor Bailey speaking.
Later in the US, it will be more homes sales data today, but again, the attention may very well be elsewhere by that time.
Forex Signal Update
The FX Leaders Team didn’t close any green signals yesterday but we hunting some opportunities in the majors at the moment.
EUR/USD – Active Signal
The EUR/USD has been holding the downtrend line, despite a few green session. We are short looking for some more downside here.
USD/JPY- Active Signal
The USD/JPY is stuck to the 107.00 level like glue at the moment. Any risk-off today, will likely flow into the JPY so that is a consideration. We are long here.
BTC ran up above the $9,600 level overnight as the bullish sentiment in the crypto space returns.
That said, we know that the risk trade is now correlated with Bitcoin, so today’s developments will be important.