Tensions appear to be flaring between Russia and Ukraine once more, so risk-off flows are in play.
However will a possible oil rally elevate the Loonie?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out EUR/USD’s bearish pullback forward of the U.S. retail gross sales and FOMC minutes launch. Make sure to try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Contemporary Market Headlines & Financial Knowledge:
U.S. core retail gross sales jumped 3.3% in January after earlier 2.8% stoop
U.S. headline retail gross sales rose 3.8% vs. projected 2.1% improve
U.S. industrial manufacturing rebounded by 1.4% after earlier 0.1% dip
Canadian headline CPI up 0.9% vs. 0.6% forecast, -0.1% earlier
Canadian core CPI at 0.8% vs. earlier flat studying
Biden administration says extra Russian troops arrived at Ukraine border Wednesday
FOMC minutes acknowledged value pressures however cautious of overdoing fee hikes
France says Iran nuclear deal only some days away
Australian economic system added 12.9K jobs in January vs. projected flat studying
Australia’s unemployment fee unchanged at 4.2% as anticipated
Japanese core equipment orders jumped 3.6% vs. projected 2.0% stoop
U.S. Philly Fed index at 1:30 pm GMT
FOMC member Bullard’s speech at 4:00 pm GMT
New Zealand quarterly PPI at 9:45 pm GMT
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: USD/CAD
USD/CAD 1-hour Foreign exchange Chart
Danger aversion appears to be creeping again into the monetary markets on contemporary fears of assaults between Russia and Ukraine.
Phrase via the grapevine is that extra Russian troops arrived on the border as a substitute of being withdrawn whereas Ukrainian forces are reportedly firing mortars and grenades.
Whereas these headlines sparked one other flight to security that boosted the greenback, the oil-related Loonie would possibly be capable to maintain its floor.
Recall that crude oil staged a robust rally earlier within the week, as traders feared that the battle would possibly outcome to manufacturing outages and provide disruptions. In flip, this might immediate one other international vitality crunch, particularly since demand is beginning to decide up.
If that’s the case, USD/CAD would possibly flip upon hitting the ceiling on the high of its vary round 1.2785. Stochastic is on the transfer up for now, suggesting that consumers are in management, however the oscillator can also be approaching the overbought area.
The 100 SMA is above the 200 SMA, although, so the trail of least resistance may be to the upside. Sustained risk-off flows would possibly spur a bullish breakout from the vary, so I’d preserve my eyes peeled for both reversal or continuation candlesticks on the high.
Don’t neglect that there are talks of Iran presumably securing a deal to have sanctions lifted, which may imply greater oil output and draw back strain on costs.
