This pair may be in for an enormous breakdown now that the U.Okay. printed a bunch of stories within the crimson!
Listed here are the degrees I’m watching.
Earlier than transferring on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Verify them out earlier than you place your first trades as we speak!
And now for the headlines that rocked the markets within the final trading sessions:
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.Okay. industrial manufacturing sank by 0.6% in Might, manufacturing manufacturing down 1.0%
U.Okay. financial system contracted by 0.3% in Might vs. projected 0.2% progress
U.Okay. items commerce deficit narrowed from 23.9B GBP to 20.9B GBP
Asian shares hunch 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 worth index at 10:45 pm GMT
Use our new Currency Heat Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: GBP/CAD
With the newest spherical of U.Okay. stories fueling recession fears, I wouldn’t be shocked if GBP/CAD breaks down from this vary quickly!
The pair is at the moment testing help, and a transfer under the 1.5720 stage may be sufficient to spur a selloff that’s the identical peak because the chart pattern.
The 100 SMA is under the 200 SMA, in spite of everything, hinting that there’s nonetheless some bearish strain in play. Simply watch out because the hole between the symptoms has narrowed sufficient to trace at a doable bullish crossover.
Additionally, Stochastic is on the transfer up after climbing out of the oversold area not too long ago, signaling that patrons are in management.
Then once more, it’s onerous to dismiss how the U.Okay. financial 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 forex would possibly take cues from crude oil or general market sentiment. Watch out on the market!