No big report scheduled in the next couple of hours, so I’m looking at high-yielding bets like the comdolls for opportunities today.
What do you think of USD/CAD’s chart?
Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist looked at AUD/CHF’s range ahead of Australia’s GDP release. 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:
- Inflation has risen higher than Fed’s Brainard expected, but she says it will fade back to 2% or less
- UK retailers report more inflation pressure as economy reopens
- GDP figures show Aussie economy back at pre-pandemic levels
- U.S. says ransomware attack on meatpacker JBS likely from Russia
- Japan Economy Minister says he hopes Britain joins TPP trade pact after Brexit
- Erdogan timeline for rate cuts pushes Turkish lira to record low
- Asian shares tick up U.S. data bolsters reopening hopes
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s mortgage approvals and individual lending at 8:30 am GMT
- Eurozone PPI at 9:00 am GMT
- RBA Deputy Governor Debelle to give a speech at 9:00 am GMT
- Canada’s building permits at 12:30 pm GMT
- U.S. Beige book report at 6:00 pm GMT
What to Watch: USD/CAD
USD/CAD looks ready to bust through the channel support on the 1-hour time frame.
What’s interesting about today’s setup is that the bears still have a chance with Stochastic pointing to a short-term bearish divergence.Which way will USD/CAD go?
News of OPEC members and friends sticking to their plan of gradually easing their supply cut deal has made oil bulls happy. Of course, it didn’t hurt that talks with Iran had been progressing slowly, and that the gang had shared their optimistic demand outlook for the rest of the year.
If traders continue to focus on the reopening of the global economy, then USD/CAD could slide back inside its descending channel and hit the 1.2050 inflection point.
But if markets focus on inflation concerns again, or if Loonie traders get spooked by expectations of weaker jobs numbers in Canada, then USD/CAD could extend its intraweek uptrend all the way to the 1.2120 May highs.