Canada is printing its labor market reports today!
Will traders’ reactions be enough to yeet EUR/CAD above a key trend line resistance?
Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist looked at a straddle play on CAD/CHF ahead of Canada’s employment releases. Be sure to check that out to see if there is still a potential play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- U.S. adds Chinese supercomputing companies to export blacklist
- Strong sales and new orders lift Australia’s services sector in March
- RBA warns against ‘over-exuberance’ as house prices rise
- China factory gate prices rise by most in nearly 3 years as economic recovery quickens
- World stocks hit record high, powered by Wall Street
- Australia halts AstraZeneca vaccine for most people under 50
- Sterling falls, set for biggest weekly loss since 2020
- Production industry suffers in Germany and France as virus forces lockdowns
- Tax break extension pumps up UK house prices in March: Halifax
- Italy set to ease lockdown restrictions in most of the country
Upcoming Potential Catalysts on the Economic Calendar:
- BOE’s quarterly bulletin at 11:00 am GMT
- Canada’s employment numbers at 12:30 pm GMT
- U.S. PPI reports at 12:30 pm GMT
What to Watch: EUR/CAD
In case you missed it, traders have been favoring the euro over the Loonie since the start of April as the Eurozone’s vaccine rollout and a bit of risk appetite in the markets have upped the demand for the battered common currency.
Bulls and bears are now in a showdown at the 1.5000 major psychological level that also lines up with a 38.2% Fib retracement, the 200 SMA, and a trend line resistance that the bulls have been bowing to since the start of the year.Weak industrial production numbers from Germany and France are giving the bears reason to extend EUR/CAD’s 2021 downtrend.
If Canada’s jobs data surprises to the upside, then we could see the euro break its current consolidation and return to the 1.4900 area of interest.
But if Canada shows a slower pace of hiring as markets are expecting, or if traders worry about Montreal implementing a curfew starting Sunday, then EUR/CAD could have enough momentum to break the 2021 trend line resistance to revisit the 1.5100 levels.
