US Market Wrap
Last week ended in the same sort of fashion as it began with more up and down price action.
On Friday, US COVID cases topped 40,000 and that lead stocks to fall away sharply. While the USD continues to grind higher, albeit with the same type of back and forth price action.
In the US, California, Texas and Florida have all reported huge jumps in the number of cases, which this week will see the worldwide number reach 10 million. This week will also mark six months since the first reported cluster of cases in China by the WHO.
The Data Agenda
While COVID is the thing that is weighing on markets there is a big week ahead of data as well as key speakers.
Arguably the main event this week will be US non-farm payrolls, which is due to be released a day early thanks to Independence Day in the US. Markets are looking at 3 million jobs being created after last months shock increase. However, there is a long way to go with more than 22 million jobs being lost throughout the current downturn.
Looking ahead there are a number of speakers of interest, with Federal Reserve chairman Jerome Powell and Treasury Secretary Steven Mnuchin testifying before the House of Representatives financial services committee. We will also get the Fed minutes, but this might not be as market moving as real-time thoughts and opinions.
In terms of other data, there is plenty to watch, but as has been the case recently, the numbers are improving, but markets remain hesitant to act just yet. Which could be the story of the week once again.
Forex Signal Update
The FX Leaders Team finished with 7 wins from 18 trades on the week as choppy price action the main issue. We could be in for some opportunities if the COVID fears continue to mount, so keep an eye on the signals page.
Gold – Pending Signal
GOLD looks like it is trying to chip away at the highs around the $1775 level, and while there is still fear in the air, we shuold expect more upside to come.
USD/JPY – Active Signal
The USD/JPY is rotating around the 107.00 level and was relatively unchanged on some data this morning. We remain looking for that support underneath to break down.
BTC looks like it is starting to get a little heavy after falling under the $9,250 level. That had been seen some buying pressure, but price has since even dipped under $9,000.
Given that there feels like a bit of risk-off around at the moment, price could see some downside, certainly on a break of that big support.