I’m steering away from greenback pairs for at the moment because the U.S. CPI might spur loopy volatility once more.
Right here’s what I’m watching on GBP/CAD as a substitute.
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/USD’s bearish pullback for a risk-off setup. Make sure to try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
Japanese financial institution lending up by 0.5% as anticipated
Japanese producer costs rose 9.5% vs. 9.2% forecast, 9.7% earlier
Japanese finance minister Suzuki jawbones extra FX volatility
Crude oil holds its floor as Shanghai eases some lockdown measures
Asian shares wanting wobbly forward of U.S. inflation information
Australian NAB enterprise confidence index climbed from 13 to 16 in March
German last CPI unchanged at 2.5% as anticipated
U.Ok. claimant rely down 46.9K vs. projected 41.1K decline
U.Ok. jobless fee improved from 3.9% to three.8% as anticipated
U.Ok. common earnings index climbed from 4.8% to five.4% as anticipated
Eurozone and German ZEW financial sentiment index at 9:00 am GMT
U.S. headline and core CPI at 12:30 pm GMT
FOMC member Brainard’s speech at 4:15 pm GMT
Use our new Currency Heat Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: GBP/CAD
I’m seeing this inverted head and shoulders pattern on the hourly timeframe of GBP/CAD, so I’m gonna keep the lookout for a reversal.
The pair has but to interrupt above the neckline across the 1.6500 main psychological resistance to substantiate that an uptrend is underway.
If that occurs, GBP/CAD might climb by the identical peak because the chart formation or roughly 200 pips!
Technical indicators are wanting blended, however I can’t assist however discover the bullish moving average crossover that simply passed off.
Stochastic is within the overbought zone, which implies that consumers are exhausted and will use a break. In that case, sellers would possibly nonetheless take over and convey GBP/CAD again right down to close by help ranges.
Earlier at the moment, the U.Ok. printed comparatively upbeat jobs figures, with the claimant rely change and common earnings index posting enhancements.
On the flip facet, the oil-related Loonie could possibly be on weak footing because the lockdowns in China weigh on demand whereas the discharge of U.S. reserves boosts provide.