Partner Center Find a Broker

Global risk sentiment shifts to negative after weak North American economic data, making the drop in CAD/JPY one to watch for the rest of the session.

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 11067.48 -0.65%
FTSE: 7201.56 +0.15%
S&P500: 2734.13 -0.69%
DJIA: 25368.03 -0.69%
US 10-yr 2.646% -0.06
Bund 10-YR 0.093% -0.029
UK 10-YR: 1.129% -0.054
JPN 10-YR: -0.008% +0.005
Oil: 53.40 -0.93%
Gold: 1314.00 -0.08%
Bitcoin: 3561.46 -0.53%
Etherium: 120.13 -1.14%

Fresh Market Headlines & Economic data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Fed ‘s Harker speaks in Newark at 4:00 pm GMT
  • RBA’s Kent speaks in Melbourne at 8:45 pm GMT
  • New Zealand Internation Travel and Migration at 9:45 pm GMT
  • China CPI  and PPI at 1:30 am GMT (Feb. 15)
  • Japan Industrial Production at 4:30 am GMT (Feb. 15)
  • U.K. Retail Sales at 9:30 am GMT (Feb. 15)

What to Watch: CAD/JPY

CAD/JPY 1-Hour Forex Chart
CAD/JPY 1-Hour Forex Chart

Fast moves for Loonie pairs in the morning U.S. session after a big negative surprise from Statistics Canada that manufacturing sales were down 1.3% in December. We’re also seeing a broad shift in risk sentiment to the negative after U.S. retail sales data shows the biggest drop in a decade, obviously taking focus away from the positive sentiment stemming from the U.S.-China trade negotiations over the last few sessions.

With weak Canadian data and risk-off sentiment in the driver’s seat, we’re throwing CAD/JPY onto the watchlist, especially after the big drop after the weak CA manufacturing sales data. The pair is testing the major psychological level at 83.00 after falling from trading just under the 84.00 handle before the news, and it’s a level that’s held as support/resistance since the beginning of February. The question now is whether this pair will break lower, or are there profit takers or fresh buyers to take the pair higher?

With the move being sparked by fresh news and countering recent positive sentiment, the lean is likely to be to the downside for now. But from this point after a big drop, it’s probably a good idea to watch for a bounce to around the 83.30 – 83.50 area and see resistance patterns form, or a solid break/sustain lower before making moves if you’re still bearish on CAD/JPY.

For the bulls, you may be able to catch a bounce here on profit taking, but with a nearly empty calendar, it’ll take some surprise news on the U.S.-China trade story, an oil supply drop, or maybe even news avoiding a “no-deal” Brexit scenario to get sustained buying to come back. All low probability situations for the rest of the session.