USD/CAD has damaged above a key technical resistance!

How excessive can USD/CAD fly?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/USD’s Head and Shoulders sample after Australia printed weak labor market knowledge. You should definitely take a look at if it’s nonetheless a sound play!

And now for the headlines that rocked the markets within the final buying and selling classes:

Recent Market Headlines & Financial Knowledge:

BOC Gov. Macklem: “Nonetheless a great distance from our inflation goal, however current developments have bolstered our confidence that inflation is coming down”

Lowe: RBA wants to answer inflation’s demand component with “additional financial coverage,” have to clarify that “we weren’t executed but.”

NZ FinMin Grant Robertson: Cyclone Gabrielle have an effect on inflation within the close to time period however there’s proof that “we’ve peaked” when it comes to inflation

Greenback reaches six-week excessive on fee hike forecasts

Germany’s producer costs decelerated from 21.6% to 17.8% y/y in January

January discounting pushes U.Okay. retail gross sales 0.5% m/m increased vs. 0.3% anticipated, -1.2% in December

Japan to launch pilot programme for issuing digital yen

Eurozone’s present account knowledge at 9:00 am GMT
Canada’s international securities purchases at 1:30 pm GMT
Canada’s manufacturing unit gate and uncooked supplies costs at 1:30 pm GMT
US CB main index at 3:00 pm GMT

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What to Watch: USD/CAD

USD/CAD 1-hour Foreign exchange Chart by TradingView

Should you weren’t round in the course of the U.S. session, know that the greenback discovered consumers after Uncle Sam’s PPI and preliminary jobless claims knowledge supported the concept of the Fed elevating its rates of interest additional and/or maintaining them excessive this yr.

Hawkish bets on USD was sufficient to push USD/CAD firmly above the 1.3475 zone that had served as resistance for at the very least a month.

How excessive can USD/CAD fly?

Each the U.S. and Canada solely have lower-tier studies due within the subsequent buying and selling classes so USD/CAD’s value motion will possible take cues on general threat and USD sentiment.

If markets deal with their hawkish Fed bets, or in the event that they begin to fear concerning the impression of excessive(er) rates of interest on world development, then USD/CAD might keep its bullish momentum.

USD/CAD might revisit areas of curiosity like 1.3530 and even 1.3600.

But when European and U.S. session merchants deal with better-than-expected knowledge releases, or in the event that they promote a risk-friendly buying and selling surroundings, then USD/CAD might hand over a few of its intraweek beneficial properties.

USD/CAD might drop again to its 1.3475 damaged resistance zone or go decrease relying on the bearish momentum.