Canada will print its labor market numbers while Uncle Sam is publishing its latest consumer inflation figures.
Care to see what USD/CAD’s chart looks like before the data releases?
Before moving on, ICYMI, yesterday’s watchlist checked out EUR/USD’s breakout levels ahead of ECB’s policy decision. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
ECB keeps policies steady but shared plans to raise interest rates by 25 basis points in July
ECB to end net purchases under APP starting July 1
ECB expects another rate hike in September, and then “gradual but sustained” increases after
ECB downgraded growth forecasts and increased inflation estimates
U.S. initial jobless claims up to January levels at 229K (vs. 205K expected)
Gov. Macklem: BOC may need more interest rate steps, move more quickly, or take a larger step to get inflation back to target
Japan’s input price growth cools from 9.8% to 9.1% y/y in May on ramped-up government help
Japan govt, BOJ voice “concern” over recent sharp yen fall
China’s factory inflation hits 14-month low, slowing down from 8.0% to 6.4% y/y in May
China’s consumer inflation rose by 2.1%, slower than 2.2% expected in May
Panic buying in Shanghai as mass testing in 7 out of 16 districts spark fears of new lockdown
Italian industrial production unexpectedly increased for a third straight month in April
World stocks hit two-week lows on inflation jitters, policymakers boost yen
U.S. CPI numbers at 12:30 pm GMT
Canada’s labor market numbers at 12:30 pm GMT
U.S. preliminary UoM consumer sentiment at 2:00 pm GMT
U.S. federal budget balance at 6:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: USD/CAD
I know end-of-week trades usually favor short-term setups but you gotta see USD/CAD’s daily chart!
The pair just bounced from the 1.2525 handle that lined up with ascending channel support.
The odds currently favor more USD buying as the latest candlesticks trade above the 100 and 200 SMAs while Stochastic is just getting ready to leave the oversold area.
Will today’s data releases support USD/CAD’s year-long uptrend?
All eyes will be on Uncle Sam’s consumer inflation report, which is expected to show faster consumer price increases in May than in April.
Good news for the Fed’s aggressive monetary tightening schedule, bad news for overall economic recovery.
It also won’t help the oil-related CAD that Shanghai has imposed fresh lockdowns in some areas and could expand these lockdowns if new tests reveal more COVID cases.
Before you buy USD/CAD like there’s no tomorrow, though, you should know that Canada’s labor market numbers scheduled today could print to the upside.
This could limit USD/CAD’s gains to the 1.2800 mid-channel levels or at least inspire some end-of-week profit-taking for USD/CAD bulls.
If you’re an intraday trader, don’t forget to pay attention to USD/CAD pivot points.
Watch the pair closely, my dudes!