The Financial institution of Canada (BOC) is up so that you greatest consider USD/CAD is on our radar in the present day!
Will the central financial institution’s determination break USD/CAD from its weeks-long vary?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out a possible 500-pip transfer in case GBP/USD busts out of its triangle consolidation. You’ll want to take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Contemporary Market Headlines & Financial Information:
S&P Case-Shiller residence worth index slows down for a fourth consecutive month in August
US CB shopper confidence dips from 107.8 to 102.5 in October
API crude oil shares beat with 4.5M barrel enhance vs. 200K uptick seen within the week ended Oct 21
Chinese language state-owned banks offered USD in each onshore and offshore markets – Reuters
Australia’s annual inflation races from 6.1% to 32-year excessive of seven.3%, sounds charges alarm
RBA’s trimmed imply CPI jumped from 4.9% to six.1%, a lot larger than RBA’s 2% – 3% goal
ANZ’s survey reveals drop in enterprise confidence and exercise ranges – however inflation expectations have risen once more
Shares rise in Asia on hopes of slowing price hikes
U.S. items commerce steadiness at 12:30 pm GMT
BOC’s financial coverage determination at 2:00 pm GMT
U.S. new residence gross sales at 2:00 pm GMT
U.S. EIA crude oil inventories at 2:30 pm GMT
BOC’s presser at 3:00 pm GMT
Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: USD/CAD
USD/CAD 4-hour Foreign exchange Chart
It’s been a “dangerous information is sweet information” type of week to date for threat currencies as shaky/blended earnings experiences from world wide are pointing to main central banks slowing down their rate of interest hikes to keep away from “overtightening.”
In USD/CAD’s case, falling U.S. Treasury yields and a slight restoration in threat sentiment and oil costs have helped preserve the pair inside a spread that had fashioned after a powerful September upswing.
USD/CAD is now buying and selling nearer to the 1.3550 minor psychological deal with that’s simply above the weeks-long vary on the chart.
Will the vary maintain for one more day? Or is USD/CAD due for a reversal?
If the BOC raises its rates of interest by 75 foundation factors in the present day, then merchants who had solely priced in a 50bps price hike might soar on the CAD-buying practice and drag USD/CAD decrease.
USD/CAD might lengthen its October downswing and breach the 1.3500 – 1.3550 help zone.
In fact, markets might nonetheless return to purchasing the safe-haven USD.
If markets flip threat averse after the massive earnings misses this week, or if merchants return to pricing in additional price hikes from the main central banks, then USD/CAD might return to its uptrend.
USD/CAD might bounce from the 1.3500 zone and head for the 1.3800 earlier resistance degree.
