CAD Dives after No So Hawkish BoC, Stocks Rebounding
Action Insight Mid-Day Report 1-26-22

CAD Dives after No So Hawkish BoC, Stocks Rebounding

Canadian Dollar tumbles notably in early US session after much less hawkish then expected BoC rate decision. The central bank stands pat while lowering both inflation and growth forecasts. Elsewhere in the currency markets, Yen is trading broadly lower with Swiss Franc as stock markets are staging a strong rebound. Meanwhile, Aussie is also trying to extend recovery. But then, the next moves will firstly depend on FOMC later in the day and development surrounding Ukraine.

Technically, we're maintain that some resistance levels in Yen crosses should be taken out with conviction if sentiment is truly turning risk-on again. The levels include 115.05 minor resistance in USD/JPY, 130.07 minor resistance in EUR/JPY, 155.38 minor resistance in GBP/JPY, 82.07 minor resistance in AUD/JPY.

At the time of writing, DOW is up 1.11%. S&P 500 is up 1.61%. NADSAQ is up 2.19%. 10 year yield is flat at 1.776. In Europe, FTSE is up 2.01%. DAX is up 2.63%. CAC is up 2.63%. Germany 10-year yield is up 0.0086 at -0.068. Earlier in Asia, Nikkei dropped -0.44%. Hong Kong HSI rose 0.19%. China Shanghai SSE rose 0.66%. Singapore Strait Times rose 0.73%. Japan 10-year JGB yield dropped -0.0009 to 0.140.

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

USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2595; (P) 1.2632; (R1) 1.2666; More...

Intraday bias in USD/CAD remains neutral and further rise is mildly in favor with 1.2553 minor support intact. Pull back from 1.2964 should have completed with three waves down to 1.2448. Above 1.2700 will target 1.2812 resistance first, and then 1.2963. On the downside, below 1.2553 minor support will turn bias back to the downside for 1.2448 instead.

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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 Corporate Service Price Index Y/Y Dec 1.10% 1.10% 1.10%
23:50 JPY BoJ Summary of Opinions
09:00 CHF Credit Suisse Economic Expectations (Jan) 9.5 0
13:30 USD Wholesale Inventories Dec P 2.10% 1.30% 1.40%
13:30 USD Goods Trade Balance (USD) Dec P -101.0B -96.1B -98.0B
15:00 USD New Home Sales Dec 811K 766K 744K
15:00 CAD BoC Interest Rate Decision 0.25% 0.25% 0.25%
15:30 USD Crude Oil Inventories 1.0M 0.5M
19:00 USD FOMC Rate Decision 0.25% 0.25%
19:30 USD FOMC Press Conference