Markets will be waiting to hear once again from Fed boss Jerome Powell as the FOMC speakers begin to roll out for the week.
Of course, much of the attention is on what exactly is happening with the FOMC and their next move on rates. While it is widely expected that we will now be seeing a cut after the last meeting of the FOMC, when that will occur is what we are all looking to uncover this week.
Aside from Powell speaking, he has also been under a fair bit of pressure from US President Trump. Who has been taking aim at him all year for hiking rates in the first place and has suggested he could remove him at any time. While this is a bit of a sideshow at the moment, it goes to show you that this is a political issue as well.
The key data today will be from the US session with consumer confidence and new home sales. WTI could be worth watching late in the day for the API inventory data, but overall there isn’t much big data out.
Markets have been a little subdued in early trade as many participants are also anxious about the upcoming G20 meeting.
Forex Signal Update
The FX Leaders Team finished with 3 wins from 3 signals, in a strong start to the week.
USD/JPY – Pending Signal
The USD/JPY hit our take profit target during the Asian session after the BOJ released their April minutes. There wasn’t really anything too unexpected and in reality, there has been plenty of weakness in the Yen recently. We are looking at another short signal today as long as the USD doesn’t bounce.
GBP/JPY – Active Signal
The GBP/JPY, has been in a nice little downtrend here and this signal is really just going with that higher time frame momentum. The JPY has been strong while the GBP still has some headwinds.
BTC looks like it has held the $10,000 level, and so far in Asian trade is holding nicely above the $11,000 mark.
As I mentioned earlier today, there is a bit of resistance ahead around the $11,500-$12,000 region which is the backside of the big run from 2017.
I am still fully expecting more upside ahead and will be maintaining a long bias for the time being until we cannot hold a major resistance level.