A dovish charge hike dragged GBP decrease towards CAD.
Will we see a breakdown of GBP/CAD’s triangle sample?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out GBP/AUD’s pullback alternatives forward of the BOE assertion. Remember to try if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Information:
As anticipated, BOE hikes charges for a 3rd consecutive month to 0.75%
BOE adopts dovish tone as Ukraine struggle provides to inflation issues
Philadelphia Fed’s manufacturing gauge improves from 16.0 to 27.4 in March
U.S. Home strikes to revoke Russia, Belarus commerce standing
U.S. weekly jobless claims fall to 214K, lowest since begin of 2022
U.S. housing begins rebound by 6.8% in Feb; constructing permits fall by 1.9% after sharp improve in Jan
Wall Road closes larger as worries ease round Fed, Russian default
Japan Feb core CPI rises 0.6% y/y
BOJ maintains enormous stimulus, warns of progress dangers from Ukraine disaster
BOJ’s Kuroda: larger inflation largely resulting from rising commodity costs so “no want” to tighten financial coverage
Asian shares step again, oil bounces as peace talks stall
Italy’s commerce steadiness at 9:00 am GMT
Eurozone’s commerce steadiness at 10:00 am GMT
Canada’s retail gross sales at 12:30 pm GMT
U.S. current house gross sales at 2:00 pm GMT
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
GBP/CAD 1-hour Foreign exchange Chart
In case you missed it, the Financial institution of England (BOE) raised its rates of interest for a 3rd month in March BUT additionally warned that Russia’s struggle with Ukraine has added to the uncertainty across the economic system’s progress.
In the meantime, an increase in oil costs and a little bit of risk-taking has pushed CAD larger towards its main counterparts.
GBP/CAD merchants at the moment are being attentive to the pair’s weekly help close to 1.6575. As you possibly can see, it additionally marks the underside of a descending triangle on the 1-hour timeframe.
Let’s see if Canada’s retail gross sales report scheduled within the U.S. session will get issues transferring for the pair.
The percentages are favoring the bulls with a few wicks across the triangle help and a bullish divergence on the 1-hour chart.
However present market themes level to an prolonged downtrend.
Until there’s growth within the Russia-Ukraine peace talks, or except Canada’s retail gross sales numbers miss expectations of a rebound, then we may see GBP/CAD make new month-to-month lows and revisit its March 2020 lows close to 1.6540.
