Forex Signals Brief for Aug 23: Jackson Hole in Focus
US Wrap
Markets closed out the week higher as the attention turns towards the upcoming Jackson Hole Symposium.
We’ve seen an ever-increasing push towards the safety of the USD over the past few weeks and this will only continue to increase should the FOMC indicate any plans to change their current course.
The rising USD is beginning to wreak havoc on many commodities and is also sinking the majors. The USD index (DXY) has risen to its highest since November 2020 and we are seeing the likes of the AUD/USD smash through key support levels.
Meanwhile, in the crypto space the resurgent BTC is closing back in on the $50,000 and dragging the entire sector along for the ride.
The Data Agenda
The main focus this week is the Jackson Hole Symposium beginning Friday, with most attention on Fed Boss Jerome Powell and what might happen to their current QE program.
We are all expecting the taper to begin sooner rather than later and rates to follow, but we continue to be disappointed and given how addicted and reliant the world is on money printing right now, I’m not confident we’ll see anything change.
Three-quarters of economists expect a signal on tapering either this week or at the next FOMC meeting in late September.
Forex Signal Update
The FX Leaders Team hit 5 winners from 6 trades, and found plenty of winners thanks to the surging Greenback.
We have five open signals at the moment, so look to the forex signals page for all the latest developments.
XRP – Active Signal
XRP has certainly been bullish recently but is still off the recent highs at $1.30. We are long.
USD/JPY – Active Signal
The rising USD hasn’t quite seen the USD/JPY keep pace. Watch for this one to try and play catch up.
Cryptocurrency Update
BTC is on the brink of testing $50,000, in Asian trade and continues to look bullish in the short term.
$50,000 is a huge level for Bitcoin and we will be watching how the session unfolds closely.
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