Dollar Extending Rebound on Yields and Risk Aversion, Canadian Stronger
Action Insight Mid-Day Report 1-19-22

CAD Rises after Strong CPI, Dollar Retreats

Canadian Dollar jumps higher again after data should consumer inflation rose further to multi-decade high. On the other hand, Dollar is paring some gains as stock markets are trying to recover. As for the week so far, Euro remains the worst performing one. Sterling is next and will look into BoE Governor Andrew Bailey's comments. Yen and Swiss Franc are mixed for now.

Technically, USD/JPY's breach of 114.30 minor support suggests that recovery from 113.47 is finished. Deeper fall could be seen to this support. We'll see if greenback's weakness would be displayed in other Dollar pairs. Or, Yen is staging a more broad-based recovery with GBP/JPY breaking through 154.86 minor support.

In Europe, at the time of writing, FTSE is up 0.61%. DAX is up 0.69%. CAC is up 0.93%. Germany 10-year yield is up 0.0078 at -0.008. Earlier in Asia, Nikkei dropped -2.80%. Hong Kong HSI rose 0.06%. China Shanghai SSE dropped -0.33%. Singapore Strait Times rose 0.12%. Japan 10-year JGB yield dropped -0.0148 to 0.137.

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Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2478; (P) 1.2521; (R1) 1.2556; More...

USD/CAD's fall from 1.2963 resumes by breaking 1.2452 and intraday bias is back on the downside. Current development argues that whole pattern from 1.2005 has completed with three waves to 1.2963. Below Further decline would be seen to 1.2286 support, possibly further to retest 1.2005 low. Nevertheless, on the upside, break of 1.2569 minor resistance will indicate short term bottoming and turn bias back to the upside for stronger rebound.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
07:00 EUR Germany CPI M/M Dec F 0.50% 0.50% 0.50%
07:00 EUR Germany CPI Y/Y Dec F 5.30% 5.30% 5.30%
07:00 GBP CPI M/M Dec 0.50% 0.30% 0.70%
07:00 GBP CPI Y/Y Dec 5.40% 5.20% 5.10%
07:00 GBP Core CPI Y/Y Dec 4.20% 4.00% 4.00%
07:00 GBP PPI Input M/M Dec -0.20% 0.70% 1.00% 1.50%
07:00 GBP PPI Input Y/Y Dec 13.50% 13.70% 14.30% 15.20%
07:00 GBP PPI Output M/M Dec 0.30% 0.60% 0.90% 1.00%
07:00 GBP PPI Output Y/Y Dec 9.30% 9.40% 9.10% 9.30%
07:00 GBP PPI Core Output M/M Dec 0.50% 0.80% 0.80%
07:00 GBP PPI Core Output Y/Y Dec 8.70% 8.60% 7.90% 8.20%
09:00 EUR Eurozone Current Account (EUR) Oct 23.6B 20.3B 18.1B 19.4B
13:30 USD Housing Starts Dec 1.70M 1.65M 1.68M
13:30 USD Building Permits Dec 1.87M 1.71M 1.71M
13:30 CAD Wholesale Sales M/M Nov 3.50% 2.80% 1.40%
13:30 CAD CPI M/M Dec -0.10% 0.20% 0.20%
13:30 CAD CPI Y/Y Dec 4.80% 4.70% 4.70%
13:30 CAD CPI Common Y/Y Dec 2.10% 2.10% 2.00%
13:30 CAD CPI Median Y/Y Dec 3.00% 2.90% 2.80%
13:30 CAD CPI Trimmed Y/Y Dec 3.70% 3.40% 3.40%