It’s a lightweight buying and selling information type of day so threat sentiment will seemingly think about right this moment’s costs.
Will USD/CAD lengthen its pullback forward of the FOMC coverage determination?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out EUR/GBP pulling again from a rising channel sample. Make sure to take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Information:
China lifts two-week lockdown in Chengdu, metropolis of 21 million
OPEC+ is now 3.6 million bpd beneath its oil manufacturing goal
NAHB: US homebuilder sentiment falls for ninth straight month to 46 in September
Japan’s annual inflation hits close to 8-year excessive of three.0% in August
China leaves lending benchmarks unchanged amid world charge squeeze
RBA sees charges getting nearer to regular settings, minutes present
Biden to launch 10 million oil barrels forward of EU-Russian ban
Canada’s month-to-month CPI at 12:30 pm GMT
U.S. housing begins at 12:30 pm GMT
ECB President Lagarde to present a speech at 5:00 pm GMT
AU MI main index at 12:30 am GMT (Sept 21)
Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: USD/CAD
In case you missed it, the U.S. greenback is giving again pips throughout the board forward of the Fed’s extremely anticipated coverage announcement.
USD/CAD turned decrease from the 1.3300 main psychological deal with and is now buying and selling nearer to the 1.3250 space.
Preserve a watch out for the 1.3150 – 1.3200 zone that has served as resistance in mid-July and earlier this month.
Not solely is the realm a earlier resistance, but it surely additionally traces up with the 38.2% – 50% Fibonacci retracement ranges of final week’s upswing.
A pullback to the 1.3150 – 1.3200 ranges would additionally carry USD nearer to the 4-hour chart’s 100 SMA and sure exhaust the bearish divergence that we’re seeing on the chart.
If right this moment’s Canadian CPI launch is available in quicker than anticipated, or if the anti-dollar theme extends to the following buying and selling periods, then USD/CAD might lengthen its bearish momentum.
If merchants begin pricing within the Fed’s rate of interest hike, nevertheless, then USD may flip increased from its present costs and retest its September highs in opposition to CAD.