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The Fed’s meeting minutes is out today so you know we have to look at dollar pairs.

I’ve got my eyes on USD/CAD’s short-term downtrend!

Before moving on, ICYMI, yesterday’s watchlist looked at AUD/JPY’s potential resistance levels as traders sold the yen like there’s no tomorrow. 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:

Upcoming Potential Catalysts on the Forex Economic Calendar:

OPEC and Russia agree to increase oil output by 400K bpd in Feb amid lagging production

U.S. ISM manufacturing PMI down to 58.7 vs. 60.0 expected in Dec.

U.S. JOLTS job openings fall to 10.562M vs. 11.075M expected, quits rate returns to record highs in Nov.

Canada’s manufacturing PMI falls slightly to 56.5 vs 57.5 expected in Dec.

ANZ Australian job ads slip 5.5% as Omicron hurts sentiment

Asian stocks fell as higher U.S. yields weighed on global tech firms and pushed USD/JPY to a five-year high

France’s consumer confidence improves from 97 to 100 in Dec.

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. ADP non-farm payrolls at 1:15 pm GMT
Canada’s building permits at 1:30 pm GMT
U.S. crude oil inventories at 3:30 pm GMT
FOMC meeting minutes at 7:00 pm GMT
Caixin services PMI at 1:45 am GMT (Jan 6)
Germany’s factory orders at 7:00 am GMT (Jan 6)

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

What to Watch: USD/CAD

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

As expected, OPEC and friends have pushed through with their plans to bump up their output by 400,000 barrels per day starting February. Apparently, the gang wasn’t too worried about Omicron’s impact on global economic recovery.

An optimistic global oil demand forecast is good for the oil-related Loonie which is partly why USD/CAD has maintained its downtrend on the 1-hour time frame.

But that was before the spotlight is on the FOMC crew again. Later today Uncle Sam will print the ADP report – a leading data for Friday’s NFP numbers – and then the FOMC meeting minutes.

Focus on the Fed’s tapering and tightening schedule could help bust USD/CAD above its descending channel. A break above the trend line and moving average resistance zones could push USD/CAD to areas of interest like 1.2825 or 1.2900.

If traders decide to maintain their risk-friendly moods, however, or if they shrug off reminders that the Fed will get closer to tightening this year, then USD/CAD could extend its short-term downtrend and revisit December’s lows near 1.2630.