Canadian Dollar Strong on Risk-On Sentiment, as BoC Awaited
Action Insight Daily Report 12-8-21

Canadian Dollar Strong on Risk-On Sentiment, as BoC Awaited

Following return of risk-on sentiment, commodity currencies are currently the best performers for the week. On the other hand, Swiss Franc and Yen are trading broadly lower, followed by Euro and Dollar. The economic calendar is very light today and main focus will be on BoC policy decision. At the same time, we'll see if the strong stock market rally could continue to push major US indexes back to record highs.

Technically, the rebounds in Yen crosses are relatively disappointing so far, considering the strong rise in stocks. We'll continue to keep an eye on 113.94 minor resistance in USD/JPY, 128.77 minor resistance in EUR/JPY and 152.35 resistance in GBP/JPY to gauge if they're in a bullish turnaround.

In Asia, at the time of writing, Nikkei is up 1.19%. Hong Kong HSI is down -0.10%. China Shanghai SSE is up 0.73%. Singapore Strait Times is down -0.23%. Japan 10-year JGB yield is down -0.0011 at 0.054. Overnight, DOW rose 1.40%. S&P 500 rose 2.07%. NASDAQ rose 3.03%. 10-year yield rose 0.046 to 1.480.

Full Report Here

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

BOC Preview - Reiterating Rate Hike in First Half 2022 amidst Strong Economic Data
RBA Stayed Put, Cautiously Optimistic Over Domestic Economy
PBOC Cut RRR; More Easing is Expected to Boost Recovery
Central Bank Views | China Watch | Oil N' Gold | Special Topics

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2594; (P) 1.2681; (R1) 1.2726; More...

Immediate focus is now on 1.2639 in USD/CAD with the steep fall from 1.2852. Firm break there will argue that rebound from 1.2286 might be finished at 1.2852. Deeper fall would be seen back to 55 day EMA (now at 1.2592). Sustained break there will bring deeper fall to 1.2286 support. Nevertheless, rebound from the current level and break of 1.2742 minor resistance will retain near term bullishness and bring retest of 1.2852.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

EUR/USD – Can It Turn Things Around?

Asian Open: Santa's Rally Back On Track?

Elliott Wave View: AUDUSD Corrective Zigzag Rally In Progress

NZD/USD Could Extend Decline Below 0.6700

Market Morning Briefing: Aussie Is Now Trading Just Above 0.7100

December Flashlight for the FOMC Blackout Period

Fundamental Analysis | Technical Analysis
In-depth Reports
December Flashlight for the FOMC Blackout Period
RBA Stayed Put, Cautiously Optimistic Over Domestic Economy
PBOC Cut RRR; More Easing is Expected to Boost Recovery
November PMIs Reveals China's Fragile Economic Outlook
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
23:50 JPY GDP Q/Q Q3 -0.90% -0.80% -0.80%
23:50 JPY GDP Deflator Y/Y Q3 -1.20 -1.10% -1.10%
23:50 JPY Current Account (JPY) Oct 1.03T 0.98T 0.76T
5:00 JPY Eco Watchers Survey: Current Nov 56.3 57.8 55.5
15:00 CAD BoC Interest Rate Decision 0.25% 0.25%
15:30 USD Crude Oil Inventories -0.9M