Major Currencies Overview
It’s all about central bankers’ speeches as Williams, Bullard, Evans, George, Clarida, and Quarles are all scheduled to make testimonies throughout the week.
U.S. economic data to watch out for include the CB consumer confidence, durable goods orders, and personal spending and income figures. Read more.
There are no major economic reports up for release from the Canadian economy this week, but that doesn’t mean that it’s likely to be a boring one for the Loonie.
Keep in mind that crude oil has been in focus as tensions in the Middle East are flaring, leading traders to be wary of potential supply disruptions. Read more.
EUR & CHF
Flash PMI readings from the manufacturing and services sectors of Germany and France are due to roll in early this week while ECB head Draghi has a speech due later on.
As for the franc, the lack of top-tier Swiss reports could leave the currency extra sensitive to overall market sentiment and potential SNB jawboning. Read more.
A handful of BOE officials, including Guv’nah Carney himself, are scheduled to make speeches this week. However, pound price action might be more vulnerable to Brexit developments, with the U.K. Supreme Court scheduled to announce their ruling on the prorogation soon. Read more.
There are no major economic events from the Japanese economy this week, save perhaps a speech by BOJ head Kuroda on Tuesday.
Other than that, yen pairs might take directional clues from overall sentiment, which has been driven by U.S.-China trade updates and tensions in the Middle East. Read more.
There’s not much in the way of top-tier data from the Australian economy as well, although RBA head Lowe is scheduled to give a speech tomorrow. This could leave the Aussie sensitive to risk flows determined by developments in U.S.-China trade talks. Read more.
The RBNZ will be making its monetary policy decision this week and probably keep rates on hold this time. After all, the central bank already surprised the markets with a larger than expected 0.50% cut last time. Read more.
Charts to Watch:
First up is this update on the break-and-retest situation that we’ve been watching on GBP/CAD last week. Price is still hanging out around the broken support zone that lines up with the 38.2% Fibonacci retracement level.
Stochastic is already indicating overbought conditions this time and might be due for a move back down to show that sellers are taking over. If so, GBP/CAD could be able to make its way back down to the swing low at 1.5875 or lower.
However, if a larger pullback is in the works, price might still be able to pull up to the 50% Fib that’s still within the area of interest around the 1.6800 major psychological mark.
Here’s another pullback situation on the 4-hour time frame of USD/JPY! Price recently busted through the resistance around the 106.50 to 107.00 levels, but it looks like a correction is in order.
Applying the handy-dandy Fib tool on the latest swing low and high shows that the 50% level lines up with the 106.50 minor psychological mark right in the area of interest. However, stochastic seems to be hinting at a shallow pullback since the oscillator is already signaling exhaustion among sellers.
One more pullback situation right here! Cable is also hanging out at the area of interest around the 38.2% Fibonacci retracement level and 1.2500 major psychological mark, which coincides with a broken support level.
A larger correction could last until the 50% Fib at 1.2670 or the 61.8% level at 1.2838, but stochastic is already showing exhaustion among buyers. Turning lower could confirm that sellers are taking over and could push the pair back to the swing low at 1.1958.