Crude oil costs and threat urge for food are again!
Will at this time’s themes prolong USD/CAD’s downtrend?
Earlier than we discuss setups, try the headlines that rocked the markets within the final trading sessions:
Contemporary Market Headlines & Financial Information:
US unemployment claims fall to new pandemic low of 290,000
Stockpiles on the largest U.S. crude depot are shortly approaching critically low ranges. The final time that occurred, crude price greater than $100 a barrel
China’s authorities land gross sales slumped for a second month as demand from non-public builders additional softened following tighter laws on contemporary borrowing
Japan manufacturing PMI accelerates in October
Japan’s costs rise for first time in 18 months on vitality prices
Australia manufacturing PMI climbs from 56.Eight to 57.Three in October – Markit
Asian tech shares bounce, China property shares rally as Evergrande makes fee
U.Okay. shopper confidence drops for third consecutive month in October
Bottlenecks proceed to brake German progress, inflation mounts – PMI
Euro zone inflation expectations hit highest stage in years
Upcoming Potential Catalysts on the Economic Calendar:
U.Okay.’s manufacturing and companies PMIs at 8:30 pm GMT
Canada’s retail gross sales numbers at 12:30 pm GMT
U.S. Markit manufacturing and gross sales PMIs at 1:45 pm GMT
FOMC Chairman Powell to speak “Financial and monetary stability challenges to central banks within the wake of COVID-19” at 3:00 pm GMT
In case you’re not conversant in the foreign exchange market’s major buying and selling periods, try our Forex Market Hours instrument.
What to Watch: USD/CAD
There weren’t plenty of top-tier reviews scheduled within the final buying and selling periods however merchants have been fairly joyful that property developer China Evergrande Group managed to pay curiosity funds due on September 23.
It additionally didn’t damage that Australia’s manufacturing and PMIs printed upside surprises in the course of the Asian session.
All of the risk-taking has dragged USD/CAD again all the way down to 1.2335 after hitting an intraweek excessive close to 1.2380 and the 200 SMA on the 1-hour timeframe.
Let’s see if U.S. session merchants are within the temper for extra risk-taking. Eurozone manufacturing and companies PMIs are reflecting pockets of weaknesses however commodity-related currencies have been holding up towards the greenback to this point.
I’m preserving my eyes on USD/CAD because it exams a damaged descending channel resistance. If the greenback bounces from the trend line and makes new intraweek highs, then USD/CAD may see a longer-term reversal.
But when at this time’s themes put USD/CAD firmly again inside its channel, then we will plan for a doable dip again to October’s lows.