Markets Mixed Ahead of Central Bank Bonanza, CAD Awaits CPI
| Action Insight Daily Report 9-20-22 |
Markets Mixed Ahead of Central Bank Bonanza, CAD Awaits CPI |
The forex markets are overall mixed. Dollar retreated overnight following the rebound in stocks, but regained some ground in Asian session. Traders are holding their bets for now, ahead of the meetings of four major central banks later in the week, including Fed, BoE, SNB and BoJ. Canadian inflation data, nevertheless, could trigger some volatility in Loonie today first. Technically, GBP/CAD is one that worth watching in the coming days. While the Pound has been weak, even GBP/USD could's get rid of 1.14 handle (pandemic low) cleanly for now. Considering loss of downside momentum in GBP/CAD, as seen in daily MACD, and the proximity to 2010 low at 1.4831, there is prospect of a bounce. But, break of 1.5352 support turned resistance is needed to confirm short term bottoming first. The development will hinge on today's Canada CPI data, and BoE rate decision on Thursday. In Asia, at the time of writing, Nikkei is up 0.39%. Hong Kong HSI is up 1.41%. China Shanghai SSE is up 0.40%. Singapore Strait Times is up 0.44%. Japan 10-year JGB yield is down -0.0071 at 0.250. Overnight, DOW rose 0.64%. S&P 500 rose 0.69%. NASDAQ rose 0.76%. 10-year yield rose 0.042 to 3.490. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3217; (P) 1.3281; (R1) 1.3316; More... USD/CAD retreated after hitting 1.3343, meeting 100% projection of 1.2005 to 1.2947 from 1.2401 at 1.3343. Intraday bias is turned neutral for consolidations first. Downside of retreat should be contained by 1.3138 support to bring another rally. Sustained break of 1.3343 will pave the way to medium term fibonacci level at 1.3650. However, firm break of 1.3138 will bring deeper pull back towards 1.2952 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | National CPI Core Y/Y Aug | 2.80% | 2.70% | 2.40% | | 01:30 | AUD | RBA Minutes | | 06:00 | EUR | Germany PPI M/M Aug | 1.50% | 5.30% | | 06:00 | EUR | Germany PPI Y/Y Aug | 37.50% | 37.20% | | 07:00 | CHF | SECO Economic Forecasts | | 08:00 | EUR | Current Account (EUR) Jul | 5.3B | 4.2B | | 12:30 | USD | Building Permits Aug | 1.62M | 1.69M | | 12:30 | USD | Housing Starts Aug | 1.46M | 1.45M | | 12:30 | CAD | CPI M/M Aug | -0.10% | 0.10% | | 12:30 | CAD | CPI Y/Y Aug | 7.30% | 7.60% | | 12:30 | CAD | CPI Common Y/Y Aug | 5.60% | 5.50% | | 12:30 | CAD | CPI Median Y/Y Aug | 5.10% | 5.00% | | 12:30 | CAD | CPI Trimmed Y/Y Aug | 5.50% | 5.40% |
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