Posted Monday, October 26, 2020 by
• 2 min read
US Market Wrap
US markets ended the week in quiet fashion and we might be looking at a relatively flat week as investors await the upcoming US Election.
All week long, markets really just moved back and forth on the back of the latest talk surrounding stimulus. While even some better than expected earnings from key names didn’t move markets all that far.
That said, the SPX is still relatively firm while the USD continues to lag towards its most recent lows. A Trump victory will see that trend continue, while a Biden win will flip the script. While there are many that distrust Trump, markets like him.
As we know from last time, the big moves are likely to happen after we know who wins the election – so that will be the big opportunity ahead for forex traders.
The Data Agenda
The week ahead appears to be another that is thin on key data.
We do get a look at some interesting numbers such as US GDP, however, it will likely be overshadowed by the election. The same will be true for stocks even though there is a massive week of earnings.
Once again, the jobless claims data on Thursday will be the most up-to-date indicator we have of the state of the economy and at least last week, that figure was on the improve.
In Europe, we will hear from the ECB, but as has been the case recently, the EUR/USD knows that things are weak in Europe and stimulus hasn’t been doing much for the last decade, so why should that change anytime soon.
Forex Signal Update
The FX Leaders Team hit 8 winners from 14 trades for a 57% strike rate in what was a quiet week for the guys in the lead up to the election.
EUR/CHF – Active Signal
The EUR/CHF is sitting nicely under support turned resistance and we are short, sitting on a decent profit to date.
USD/CAD – Active Signal
The USD/CAD is really getting into a period of tight consolidation. We remain short here, while the trend holds, but expect a big move soon.
BTC was the big mover last week thanks to the news that PayPal is getting set to adopt digital currencies going forward.
Price ran up but got stuck at the $13,000 level. Now we are starting to see a familiar pattern play out, whereby price is now holding above that key level and making a series of higher lows in a triangle formation.
This is a bullish pattern and a breakthrough the $13,200 could be a long trigger, while we can risk off the recent lows.