Crude oil costs are on shaky floor, and the U.S. core PCE index is up for launch at this time!
Does this imply it’s time for a USD/CAD breakout?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out USD/JPY’s uptrend pullback ahead of the ADP report. Be sure you take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final trading sessions:
Contemporary Market Headlines & Financial Information:
U.S. to launch 180 million barrels from its crude oil SPR
IEA member nations contemplating a collective oil launch this week
Japanese preliminary industrial manufacturing up 0.1% vs. projected 0.5% improve
Australian constructing approvals jumped 43.5% vs. projected 4.8% achieve
Australia to hit Russian imports with 35% tariffs
Chinese language official manufacturing PMI slumped from 50.2 to 49.5 vs. 49.7 consensus
Chinese language official non-manufacturing PMI down from 51.6 to 48.Four vs. 50.three forecast
Japanese chief cupboard secretary says they’re monitoring FX strikes intently
OPEC-JMCC assembly ongoing
U.S. President Biden’s speech developing
U.S. Challenger job cuts at 11:30 am GMT
Canadian month-to-month GDP at 12:30 pm GMT
U.S. core PCE worth index at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
Chicago PMI at 1:45 pm GMT
Use our new Currency Heat Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: USD/CAD
Crude oil is again within the highlight at this time, with the U.S. authorities saying their plans to launch 180 million barrels from their reserves as a way to preserve worth good points in verify.
This might imply some draw back for the correlated Loonie, which is testing a key inflection level towards the U.S. greenback.
Busting via the descending trend line resistance across the 1.2500 main psychological mark may very well be sufficient to spur a reversal from the slide. Technical indicators, nevertheless, are portray a unique image.
The 100 SMA continues to be beneath the 200 SMA to counsel that the selloff is extra more likely to resume than to reverse. On the identical time, Stochastic is indicating overbought circumstances or exhaustion amongst consumers.
This might all boil all the way down to the discharge of the U.S. core PCE price index within the subsequent buying and selling session. A a lot weaker than anticipated learn for the Fed’s most well-liked inflation measure would possibly sprint hopes for back-to-back hikes or a 0.50% improve in borrowing prices for the following FOMC conferences.
Do preserve your eyes and ears peeled for any large bulletins from the OPEC-JMMC conferences as effectively!