I’m steering away from greenback pairs for right this moment because the U.S. CPI may spur loopy volatility once more.
Right here’s what I’m watching on GBP/CAD as an alternative.
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/USD’s bearish pullback for a risk-off setup. You should definitely 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 classes:
Recent Market Headlines & Financial Information:
Japanese financial institution lending up by 0.5% as anticipated
Japanese producer costs rose 9.5% vs. 9.2% forecast, 9.7% earlier
Japanese finance minister Suzuki jawbones extra FX volatility
Crude oil holds its floor as Shanghai eases some lockdown measures
Asian shares wanting wobbly forward of U.S. inflation knowledge
Australian NAB enterprise confidence index climbed from 13 to 16 in March
German closing CPI unchanged at 2.5% as anticipated
U.Ok. claimant rely down 46.9K vs. projected 41.1K decline
U.Ok. jobless charge improved from 3.9% to three.8% as anticipated
U.Ok. common earnings index climbed from 4.8% to five.4% as anticipated
Eurozone and German ZEW financial sentiment index at 9:00 am GMT
U.S. headline and core CPI at 12:30 pm GMT
FOMC member Brainard’s speech at 4:15 pm GMT
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What to Watch: GBP/CAD
GBP/CAD 1-hour Foreign exchange Chart
Reversal alert!
I’m seeing this inverted head and shoulders sample on the hourly timeframe of GBP/CAD, so I’m gonna keep the lookout for a reversal.
The pair has but to interrupt above the neckline across the 1.6500 main psychological resistance to verify that an uptrend is underway.
If that occurs, GBP/CAD may climb by the identical top because the chart formation or roughly 200 pips!
Technical indicators are wanting combined, however I can’t assist however discover the bullish transferring common crossover that simply befell.
Stochastic is within the overbought zone, which implies that patrons are exhausted and will use a break. In that case, sellers may nonetheless take over and produce GBP/CAD again right down to close by assist ranges.
Earlier right this moment, the U.Ok. printed comparatively upbeat jobs figures, with the claimant rely change and common earnings index posting enhancements.
On the flip facet, the oil-related Loonie may very well be on weak footing because the lockdowns in China weigh on demand whereas the discharge of U.S. reserves boosts provide.
