CAD Firm after Manufacturing Sales, Trading Generally Subdued
Action Insight Mid-Day Report 1-17-22

CAD Firm after Manufacturing Sales, Trading Generally Subdued

The markets are overall relatively quietly in Asian session today and trading could be subdued with US on holiday. Canadian Dollar is resilient with WTI oil staying firm at around 84 handle. Euro and Dollar are both strengthening notably. On the other hand, Yen, Aussie and Kiwi are softening. In particular, traders seem to be lightening up Yen positions ahead of tomorrow's BoJ policy decision and statement.

Technically, while the selloff in USD/JPY was steep last week, EUR/JPY and GBP/JPY are staying in consolidative range only. In particular, GBP/JPY is holding comfortably above 154.86 minor support. We'll turn our focus to 131.59 and 157.12 resistance in EUR/JPY and GBP/JPY today. Break there will resume recent rally in both crosses. If that happens, we'll see if EUR/USD and GBP/USD would break through corresponding levels at 1.1482 and 1.3748.

In Asia, at the time of writing, Nikkei is up 0.77%. Hong Kong HSI is down -0.59%. China Shanghai SSE is up 0.59%. Singapore Strait Times is up 0.08%. Japan 10-year JGB yield is up 0.0044 at 0.155.

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

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.3642; (P) 1.3692; (R1) 1.3732; More...

Intraday bias in GBP/USD remains neutral for consolidation below 1.3748 temporary top. Downside of retreat should be contained by 1.3489 support to bring another rally. As noted before, corrective fall from 1.4282 should have completed with three waves down to 1.3158, after hitting 1.3164 medium term fibonacci level. Above 1.3748 will target 1.3833 first. Sustained break of 1.3833 will pave the way back to retest 1.4248 high.

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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
23:50 JPY Machinery Orders M/M Nov 3.40% 1.40% 3.80%
00:01 GBP Rightmove House Price Index M/M Jan 0.30% -0.70%
02:00 CNY GDP Y/Y Q4 4.00% 3.30% 4.90%
02:00 CNY Retail Sales Y/Y Dec 1.70% 3.70% 3.90%
02:00 CNY Industrial Production Y/Y Dec 4.30% 3.60% 3.80%
02:00 CNY Fixed Asset Investment YTD Y/Y Dec 4.90% 4.80% 5.20%
04:30 JPY Tertiary Industry Index M/M Nov 0.40% 1.10% 1.50% 1.90%
13:30 CAD Manufacturing Sales M/M Nov 2.60% 1.70% 4.30%
15:30 CAD BoC Business Outlook Survey