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GBP/CAD moves up on the watchlist for a potential short-term play on the upcoming update on Canadian jobs data. Will volatility rise and keep the downtrend going?

Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at an opportunity forming on EUR/USD ahead of the ECB statement, so be sure to check that out to see if there is still a potential play!

Intermarket Update:

Equity Markets Bond Yields Commodities & Crypto
DAX: 14569.39 +0.20%
FTSE: 6736.96 +0.17%
S&P 500: 3939.34 +1.04%
NASDAQ: 13398.67 +2.52%
US 10-YR: 1.54% +0.02
Bund 10-YR: -0.333% -0.001
UK 10-YR: 0.734% -0.002
JPN 10-YR: 0.11% -0.01
Oil: 65.98 +2.39%
Gold: 1,720.50 -0.07%
Bitcoin: 57,795.25 +3.45%
Ethereum: 1,846.88 +2.42%

Fresh Market Headlines & Economic Data:

World stock markets hit two-week high as inflation worries moderate

Biden signs $1.9 trillion Covid relief bill, clearing way for stimulus checks, vaccine aid

ECB Ramps Up Bond-Buying Speed to Contain Rising Bond Yields

Johnson & Johnson’s one-shot Covid vaccine cleared for use in the EU

States lift Covid restrictions, drop mask mandates and reopen businesses despite warnings from Biden officials

Pfizer Covid vaccine blocks 94% of asymptomatic infections and 97% of symptomatic cases in Israeli study

Oxford-AstraZeneca: Denmark suspends vaccine ‘as a precaution’

Bitcoin Leaves Social Media Stocks ‘in the Dust’ With Market’s Inflation Pivot

Britain Delays Brexit Import Checks to Avert Disruption


Upcoming Potential Catalysts on the Economic Calendar

Japan BSI Large Manufacturing at 11:50 pm GMT
Australia New Home sales at 4:00 am GMT (Mar. 12)
German Final CPI at 7:00 am GMT (Mar. 12)
U.K. GDP, Trade Balance, Manufacturing Production at 7:00 am GMT (Mar. 12)
U.K. Consumer inflation expectations at 9:30 am GMT (Mar. 12)
Euro area Industrial Production at 9:30 am GMT (Mar. 12)

What to Watch: GBP/CAD

GBP/CAD 1-Hour Forex Chart
GBP/CAD 1-Hour Forex Chart

On the one hour chart above of GBP/CAD, we can see the pair has been in somewhat of a sideways pattern, likely a battle between both Loonie and Sterling bulls trying to price in the pandemic recovery, more specifically the re-opening of the U.K. economy (favoring the pound) and the recent rise in oil prices (favoring the Loonie).

Overall the bias seems to lean in favor of the Loonie, and with a potential update showing a recovery in Canadian jobs tomorrow, that bias may accelerate in favor of CAD.

We’ve also got low tier updates from the U.K. during the London session, which could bring some action to Sterling. If those updates disappoint while the CA data comes in positive, we’re watching out more bearish movements in GBP/CAD for a potential swing position.

If we see bearish reversal pattern from the Fib levels, that could draw in technical sellers to play the trend lower. But with resistance already formed at the Fibs, a short biased trader may want to consider scaling up to that resistance area to lower the risk of completely missing out on the move if the pair continues lower from current levels.