CAD Rebounds on Strong Job Data, USD Turning Weaker
Action Insight Mid-Day Report 9-10-21

CAD Rebounds on Strong Job Data, USD Turning Weaker

Canadian Dollar rebound strongly in early US session after stronger than expected job data. Commodity currencies are also generally firm with European stocks and US futures, followed by Sterling. On the other hand, Yen, Swiss Franc and Dollar are turning softer, but Euro is not too far away. The question now is whether the risk markets would end the week on a strong note, setting up more selling in the greenback next week.

Technically, GBP/JPY's break of 152.27 temporary top suggests resumption of rebound from 149.16 for 153.42 resistance. That's another sign of Sterling strength. GBP/USD is now pressing 1.3890 resistance and break will also resume the rebound from 1.3601. Such development would double confirm underlying bullishness of the Pound.

In Europe, at the time of writing, FTSE is up 0.39%. DAX is up 0.40%. CAC is up 0.27%. Germany 10-year yield is up 0.013 at -0.347. Earlier in Asia, Nikkei rose 1.25%. Hong Kong HSI rose 1.91%. China Shanghai SSE rose 0.27%. Singapore Strait Times rose 0.88%. Japan 10-year JGB yield rose 0.0050 to 0.045.

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USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2614; (P) 1.2671; (R1) 1.2719; More...

USD/CAD's fall from 1.2760 extends lower today but stays above 1.2492 support. Intraday bias remains neutral first. On the downside, break of 1.2492 will target 1.2421 key structural support next. Sustained break there should indicate completion of whole choppy rise form 1.2005. On the upside, above 1.2760 will bring retest of 1.2947 high 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
06:00 GBP GDP M/M Jul 0.10% 0.50% 1.00%
06:00 GBP Index of Services 3M/3M Jul 4.50% 4.70% 5.70%
06:00 GBP Goods Trade Balance (GBP) Jul -12.7B -10.9B -12.0B
06:00 GBP Industrial Production Y/Y Jul 3.80% 9.40% 8.30%
06:00 GBP Industrial Production M/M Jul 1.20% 0.30% 0.70%
06:00 GBP Manufacturing Production M/M Jul 0.00% 0.10% 0.20%
06:00 GBP Manufacturing Production Y/Y Jul 6.00% 13.50% 13.90%
06:00 EUR Germany CPI M/M Aug F 0.00% 0.00% 0.00%
06:00 EUR Germany CPI Y/Y Aug F 3.90% 3.80% 3.90%
06:45 EUR France Industrial Output M/M Jul 0.30% 0.40% 0.50% 0.60%
08:00 EUR Italy Industrial Output M/M Jul 0.80% 0.10% 1.00% 1.10%
12:30 CAD Net Change in Employment Aug 90.2K 67.2K 94K
12:30 CAD Unemployment Rate Aug 7.10% 7.40% 7.50%
12:30 CAD Capacity Utilization Q2 82.00% 80.60% 81.70% 81.40%
12:30 USD PPI M/M Aug 0.70% 0.60% 1.00%
12:30 USD PPI Y/Y Aug 8.30% 8.30% 7.80%
12:30 USD PPI Core M/M Aug 0.60% 0.60% 1.00%
12:30 USD PPI Core Y/Y Aug 6.70% 6.60% 6.20%
14:00 USD Wholesale Inventories Jul F 0.60% 0.60%
14:00 GBP NIESR GDP Estimate 3.90%