Not a number of top-tier reviews scheduled as we speak however a weekly jobless claims report from the U.S. simply would possibly verify a short-term reversal for USD/CAD.
Is USD/CAD prepared for a downtrend?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out CAD/JPY’s flag formation ahead of the BOC’s decision. Make sure you try if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
Pfizer, BioNTech vaccine neutralises Omicron with three photographs
BOC saved insurance policies unchanged, hinted of fee hikes as quickly as April 2022
Provide and demand imbalance in US jobs market hits document, JOLTS survey exhibits
EIA crude stock information exhibits 241Okay barrel lower final week
US Home passes invoice blocking imports of merchandise produced by pressured labor in China’s Xinjiang area
New Zealand manufacturing gross sales fall in third quarter
Massive Japan corporations’ sentiment up for 2nd qtr in row amid low virus instances
China’s sky-high manufacturing unit inflation slows in Nov amid value crackdown
RBA governor Philip Lowe alerts central financial institution is open to retail digital currencies
German exports up in Oct, beating forecasts and surpassing pre-pandemic ranges
SECO trims Swiss 2022 development forecast, raises inflation outlook
U.S. preliminary jobless claims at 1:30 pm GMT
BusinessNZ manufacturing index at 9:30 pm GMT (Dec 10)
Japan’s producer costs at 11:50 pm GMT (Dec 10)
U.Okay.’s manufacturing and industrial manufacturing at 7:00 am GMT (Dec 10)
In case you’re not aware of the foreign exchange market’s primary buying and selling classes, try our Forex Market Hours software.
What to Watch: USD/CAD
The financial calendar is mild on information releases as we speak so threat sentiment will seemingly take heart stage once more.
In case you missed the memo, know that merchants are completely happy that the Omicron COVID-19 variant could not derail world financial restoration as a lot as markets had feared. Oil costs are creeping increased, central banks just like the Fed and BOC are on observe to exit their financial stimulus packages, and China stays proactive in addressing market considerations.
Elevated oil costs and a risk-friendly surroundings has dragged USD/CAD to its 1.2600 lows however the pair has climbed 80 pips on a little bit of profit-taking.
Will as we speak’s market themes push USD/CAD again as much as the 1.2750 zone? Odds are in favor of the Loonie heading again all the way down to its weekly lows however ya by no means know when the greenback bulls strike, namsayin?
If the present upswing extends after which ends at 1.2750, then the damaged pattern line help will grow to be resistance together with the 50% Fib retracement and the SMAs on the 1-hour time-frame.
USD/CAD bears or reversal followers can goal the 1.2600 lows and even new December lows.
If the greenback good points extra floor regardless of the risk-friendly buying and selling surroundings, nonetheless, then it’s best to put together for USD/CAD presumably extending its weeks-long uptrend. A return to the 1.2800 ranges might result in a visit to December’s highs.