USD/CAD is testing a significant resistance zone!
Will the pair be the subsequent to file a notable technical breakout this week?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out GBP/CAD’s descending channel resistance forward of BOC’s coverage announcement. You should definitely take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Knowledge:
U.S. inflation accelerates from 8.6% to 9.1% in June, the best since November 1981
Wall Road tumbles, EUR/USD dips under parity after a scorching U.S. inflation report
BOC surprises markets with 100bps rate of interest hike (vs. 75bps anticipated) to “keep away from the necessity for even larger rates of interest down the street”
U.S. Beige E-book studies “rising” indicators of slowdown and “elevated danger” of recession
U.S. crude shares unexpectedly rise: EIA
Embattled crypto lender Celsius information for chapter safety
Italy’s authorities faces collapse as 5-Star shuns confidence vote
AU MI 12-month inflation expectations decrease from 6.7% to six.3% in June
Australia’s unemployment price falls from 3.9% to three.5% – the bottom since August 1974
Fed’s Bostic on a 100bps rate of interest hike: “the whole lot is in play”
USD/JPY is buying and selling above 138.00 for the primary time since September 1998
European shares fall, Italian shares slide on political worries
EU’s financial forecasts due in the present day
U.S. PPI studies at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
BusinessNZ manufacturing index at 10:30 pm GMT
China’s knowledge dump (GDP, retail gross sales, mounted asset funding, industrial manufacturing, unemployment price at 2:00 am GMT (Jul 15)
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: GBP/CAD
Resistance alert! USD/CAD is knocking on the 1.3060 zone that has held as resistance a minimum of thrice since mid-Might.
What makes the setup extra fascinating in the present day is that the final 4-hour candlestick appears to be like verrrry bullish and prepared and capable of tackle the resistance stage.
Recall that Financial institution of Canada (BOC) simply shocked markets with a 100bps rate of interest hike as an alternative of the 75bps hike that merchants had priced in.
Sadly for CAD bulls, foreign exchange playas had their eyes on the Fed. Particularly, they’re re-pricing the chances of the Fed elevating its charges by 100bps later this month after Uncle Sam’s CPI clocked in at a whopping 9.1% in June.
Are we taking a look at an upside breakout within the making? The U.S. will probably be printing its PPI numbers later in the present day and, whereas it gained’t have as a lot affect because the CPI launch, it may additionally feed the markets’ inflation considerations and encourage extra 100bps price hike speculations.
If the greenback domination extends to in the present day’s U.S. session buying and selling, then USD/CAD can lastly break above 1.3060 and retest earlier areas of curiosity like 1.3100 or 1.3340.
After all, merchants can even take a chill tablet and perhaps even take income forward of the weekend.
I’ll be taking a look at China’s knowledge dump scheduled throughout the Asian session for clues on the tempo of world financial development and general risk-taking.