The Pound took a bit of a tumble yesterday after a less than impressive set of data points weighed heavily, early in the session. Traders will be watching the Pound for a second day to see if there is a potential bounce coming.
Yesterday, manufacturing production fell 3.9% MoM in April which was the most in nearly 20 years. At the same time, GDP also fell by 0.4% over the same period, which is the second straight contraction. With Brexit still hanging over the head of the GBP/USD there will be a fair bit of attention on today’s wage numbers.
The UK unemployment rate for April is expected to remain steady at 3.8%. However, the total jobs created for the month looks to be falling dramatically to the point there could be a negative number. UK average earnings figures for April, are forecast to fall to 2.9% also.
Out of the US, US President Trump continues to weigh in on China and has threatened more tariffs. While today’s PPI will be important with the Fed signalling possible rate cuts and inflation is a clear worry at the moment.
Forex Signal Update
The FX Leaders Team finished with 4 wins from 5 signals, in what was a strong start to the week.
SPX – Active Signal
The SPX continues to push higher on the back of hopes of a rate cut. The odds of a June cut are elevated and any negative news adds to the dove’s case. We are long for a quick scalp here looking for a push towards the 2900 level.
GBP/USD – Active Signal
The GBP/USD, is weak at the moment as Brexit concerns weigh down the economy. On the back of the previously mentioned weak data, we are short and looking for some more downside. So hopefully today’s numbers disappoint.
BTC is back testing the $8,000 level but as yet has not found enough bidders to lift it through.
As mentioned yesterday, I am watching for a breakout of either $8,000 or $7,500 to the downside. At the moment, it looks like the bulls still hold the upper hand.
The next few hours could really be important here as price is really looking like it wants to test $8,000 today and decide its fate.