Posted Thursday, October 31, 2019 by
• 2 min read
Markets could be set for some positivity today after the FOMC interest rate decision yesterday.
While we did see yet another cut in interest rates by 25bp it does appear that it could be the last one we actually do see. Powell has been signalling as much in recent times and that certainly now is being seen as an indicator that the US economy is getting back on track.
Of course, we did have this same thing play out only months ago when Powell was in his hawkish faze. Nevertheless, there could be a bit of an uptick for the rest of the week with some early signs of risk-on in early Asian trade today.
Elsewhere, the attention will be back on the Eurozone as well as we get another important CPI print. Inflation has been the ongoing concern for the Eurozone and even though the ever-dovish Draghi is on the way out, the problem still remains.
A soft number here will just highlight the issue even further and we are expecting to see this month’s result lower than the prior. Either way, the EUR/USD will clearly be in focus early in the session. We also get GDP, which will be telling a similar story.
Forex Signal Update
The FX Leaders Team finished with 2 wins from 3 signals with some good trades in GOLD which is not surprising given it was FOMC day.
GBP/JPY – Pending Signal
The GBP/JPY is certainly still trending higher and is forming somewhat of a flag pattern. We are looking for a long position here. A breakout higher is on the cards as well.
GBP/USD – Pending Signal
The GBP/USD has been relatively positive after all the headlines surrounding Brexit and the UK early election. There appears to be hope and support has been holding. We are still hunting a long position.
BTC was starting to make a bit of a flag pattern yesterday and that has now started to really look like a descending triangle.
Price is really honing in on the $9,000 level and I feel we could be set to break to the downside in the coming sessions.
The price action has seen BTC almost ‘stair-step’ down with $10,000 strong resistance overhead. This is bearish price action in my mind.