Muted Forex Action as Traders Overlook Data, Await RBNZ Cut
| Action Insight Mid-Day Report 2-18-25 |
Muted Forex Action as Traders Overlook Data, Await RBNZ Cut |
Forex markets remained subdued today, with muted reactions to key economic data. Dollar held broadly higher as traders focused on the US-Russia peace talks, where both sides agreed to continue discussions on ending Russia’s invasion of Ukraine. However, meaningful progress is unlikely without direct involvement from Ukraine and European nations, keeping market uncertainty elevated. Canadian Dollar traded mixed following slightly stronger-than-expected core inflation data. Despite this, with headline CPI below 2% and CPI common just above 2%, BoC is still expected to gradually lower rates toward neutral levels. British Pound showed little reaction to strong UK labor market data, including strong wage growth. BoE Governor Andrew Bailey commented that the figures did not alter the central bank’s outlook, keeping rate expectations steady. Similarly, Euro ignored a notable improvement in German economic sentiment, which suggests the economy may finally be stabilizing. Australian Dollar remains supported following RBA’s cautious rate cut, with the central bank signaling that the easing cycle will proceed gradually and may not be as deep as previously expected..... |
USD/CAD Mid-Day Outlook Daily Pivots: (S1) 1.4165; (P) 1.4179; (R1) 1.4199; More... USD/CAD is staying in tight range above 1.4150 temporary low and intraday bias remains neutral. Deeper decline will remain in favor as long as 1.4378 resistance holds. Fall from 1.4791 is correcting whole rise from 1.3418. Break of 1.4150 will target 1.3946 cluster support (61.8% retracement of 1.3418 to 1.4791 at 1.3942). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 03:30 | AUD | RBA Rate Decision | 4.10% | 4.10% | 4.35% | | 07:00 | GBP | Claimant Count Change Jan | 22K | 10.0K | 0.7K | -15.1K | | 07:00 | GBP | ILO Unemployment Rate (3M) Dec | 4.40% | 4.50% | 4.40% | | 07:00 | GBP | Average Earnings Including Bonus 3M/Y Dec | 6.00% | 5.90% | 5.60% | 5.50% | | 07:00 | GBP | Average Earnings Excluding Bonus 3M/Y Dec | 5.90% | 5.90% | 5.60% | | 10:00 | EUR | Germany ZEW Economic Sentiment Feb | 26 | 20.2 | 10.3 | | 10:00 | EUR | Germany ZEW Current Situation Feb | -88.5 | -89 | -90.4 | | 10:00 | EUR | Eurozone ZEW Economic Sentiment Feb | 24.2 | 25.4 | 18 | | 13:30 | USD | Empire State Manufacturing Index Feb | 5.7 | -1 | -12.6 | | 13:30 | CAD | CPI M/M Jan | 0.10% | 0.10% | -0.40% | | 13:30 | CAD | CPI Y/Y Jan | 1.90% | 1.90% | 1.80% | | 13:30 | CAD | CPI Media Y/Y Jan | 2.70% | 2.40% | 2.40% | 2.60% | | 13:30 | CAD | CPI Trimmed Y/Y Jan | 2.70% | 2.60% | 2.50% | | 13:30 | CAD | CPI Common Y/Y Jan | 2.20% | 2.00% | 2.00% | | 15:00 | USD | NAHB Housing Index Feb | 47 | 47 |
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