This pair is likely to be in for an enormous breakdown now that the U.Ok. printed a bunch of stories within the pink!
Listed below are the degrees I’m watching.
Earlier than transferring on, ICYMI, I’ve listed the potential financial catalysts that it’s worthwhile to be careful for this week. Verify them out earlier than you place your first trades at present!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Information:
New Zealand customer arrivals up by 89.7% m/m in Might
Japanese BSI manufacturing index down from -7.9 to -9.9
U.Ok. industrial manufacturing sank by 0.6% in Might, manufacturing manufacturing down 1.0%
U.Ok. economic system contracted by 0.3% in Might vs. projected 0.2% progress
U.Ok. items commerce deficit narrowed from 23.9B GBP to twenty.9B GBP
Asian shares stoop forward of FOMC week, China’s COVID-19 restrictions
Beijing present process “explosive” COVID-19 outbreak
FOMC member Brainard’s speech at 6:00 pm GMT
New Zealand meals value index at 10:45 pm GMT
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: GBP/CAD
With the most recent spherical of U.Ok. stories fueling recession fears, I wouldn’t be stunned if GBP/CAD breaks down from this vary quickly!
The pair is at the moment testing assist, and a transfer beneath the 1.5720 stage is likely to be sufficient to spur a selloff that’s the identical top because the chart sample.
The 100 SMA is beneath the 200 SMA, in any case, hinting that there’s nonetheless some bearish stress in play. Simply watch out because the hole between the symptoms has narrowed sufficient to trace at a potential bullish crossover.
Additionally, Stochastic is on the transfer up after climbing out of the oversold area just lately, signaling that patrons are in management.
Then once more, it’s exhausting to dismiss how the U.Ok. economic system posted back-to-back month-to-month contractions and revealed a pointy drop in industrial manufacturing for Might.
There aren’t any main stories lined up from Canada, so the commodity foreign money would possibly take cues from crude oil or general market sentiment. Watch out on the market!