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I’m steering clear of dollar pairs for today since the U.S. CPI could spur crazy volatility again.

Here’s what I’m watching on GBP/CAD instead.

Before moving on, ICYMI, yesterday’s watchlist checked out AUD/USD’s bearish pullback for a risk-off setup. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Japanese bank lending up by 0.5% as expected

Japanese producer prices rose 9.5% vs. 9.2% forecast, 9.7% previous

Japanese finance minister Suzuki jawbones excess FX volatility

Crude oil holds its ground as Shanghai eases some lockdown measures

Asian stocks looking wobbly ahead of U.S. inflation data

Australian NAB business confidence index climbed from 13 to 16 in March

German final CPI unchanged at 2.5% as expected

U.K. claimant count down 46.9K vs. projected 41.1K decline

U.K. jobless rate improved from 3.9% to 3.8% as expected

U.K. average earnings index climbed from 4.8% to 5.4% as expected

Upcoming Potential Catalysts on the Forex Economic Calendar:

Eurozone and German ZEW economic sentiment index at 9:00 am GMT
U.S. headline and core CPI at 12:30 pm GMT
FOMC member Brainard’s speech at 4:15 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: GBP/CAD

GBP/CAD 1-hour Forex Chart

GBP/CAD 1-hour Forex Chart

Reversal alert!

I’m seeing this inverted head and shoulders pattern on the hourly time frame of GBP/CAD, so I’m gonna stay the lookout for a reversal.

The pair has yet to break above the neckline around the 1.6500 major psychological resistance to confirm that an uptrend is underway.

If that happens, GBP/CAD could climb by the same height as the chart formation or roughly 200 pips!

Technical indicators are looking mixed, but I can’t help but notice the bullish moving average crossover that just took place.

Stochastic is in the overbought zone, which means that buyers are exhausted and could use a break. In that case, sellers might still take over and bring GBP/CAD back down to nearby support levels.

Earlier today, the U.K. printed relatively upbeat jobs figures, with the claimant count change and average earnings index posting improvements.

On the flip side, the oil-related Loonie could be on weak footing as the lockdowns in China weigh on demand while the release of U.S. reserves boosts supply.