The pound appears to be lighter after seeing sturdy U.Okay. information, however can it maintain a candle to hawkish BOC expectations?
Right here’s what I’m seeing on GBP/CAD.
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out EUR/USD’s massive take a look at of parity. Be sure you take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Information:
U.S. IBD/TIPP Financial Optimism index improved from 38.1 to 38.5
RBNZ hiked rates of interest from 2.00% to 2.50% as anticipated
RBNZ: Will proceed to carry OCR till inflation settles inside goal vary
U.Okay. financial system expanded by 0.5% in Could vs. projected 0.1% uptick, earlier 0.2% contraction
U.Okay. building output accelerated from 0.3% to 1.5% vs. projected 0.2% improve
U.Okay. industrial manufacturing rebounded by 0.9% as a substitute of staying flat
Chinese language commerce surplus widened from 503B CNY to 650B CNY vs. 430B CNY forecast
U.S. headline and core CPI at 12:30 pm GMT
BOC financial coverage determination at 2:00 pm GMT
BOC press convention at 3:00 pm GMT
Fed Beige Ebook at 6:00 pm GMT
Australian jobs information at 1:30 am GMT (July 14)
Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: GBP/CAD
The BOC determination is developing, fellas!
Will they hike by 0.75% or put the pedal to the steel with a full 1.00% charge improve?
Both method, the highly-anticipated occasion is predicted to deliver lots of volatility for Loonie pairs, together with GBP/CAD.
I’m seeing a neat bearish channel on its hourly time-frame, with the pair inching nearer to testing the resistance. This occurs to be in keeping with the 1.5600 main psychological degree, which is likely to be sturdy sufficient to maintain positive factors in examine.
A shallow pullback may already discover sellers on the 50% degree that’s nearer to the mid-channel space of curiosity or the 61.8% Fib that coincides with the 200 SMA dynamic inflection level.
The 100 SMA is under the 200 SMA to verify that the selloff is extra more likely to resume than to reverse. As well as, Stochastic is already beginning to head south after reaching the overbought area.
Earlier on, the U.Okay. financial system printed a handful of upbeat mid-tier studies, which is likely to be sufficient to carry the pound’s spirits. Nonetheless, a hawkish BOC determination suggesting that extra aggressive hikes are within the playing cards may imply loads of draw back for this pair.
Higher set your stops proper should you’re buying and selling this one!