Canada is about to print its employment report for January!
How might EUR/CAD react to this area of interest during the release?
Before moving on, ICYMI, yesterday’s watchlist looked at AUD/USD’s ascending triangle ahead of China’s CPI and PPI reports. 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:
RBA upgraded forecasts for core inflation and wage growth
RBA Statement on Monetary Policy: More rate hikes to come
Chinese headline CPI rose from 1.8% to 2.1% y/y in Jan vs. 2.2% forecast
Chinese producer prices slipped 0.8% y/y vs. estimated 0.5% dip
U.K. economy contracted 0.5% in Dec, GDP flat for Q4 2022
U.K. industrial production rose 0.3% m/m in Dec vs. estimated 0.2% decline
U.K. preliminary business investment rebounded by 4.8% q/q in Q4 vs. projected 0.3% dip
Nikkei Times reports that Japanese gov’t is considering Kazuo Ueda as next BOJ head
EU economic forecasts coming up
Canadian employment report at 1:30 pm GMT
U.S. preliminary consumer sentiment index at 3:00 pm GMT
FOMC official Waller’s speech at 5:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/CAD
EUR/CAD 1-hour Forex Chart by TradingView
Check out this textbook retracement setup on the hourly chart of EUR/CAD!
The pair is already pulling up to the former support around the 1.4450 minor psychological mark, which happens to be in line with the 38.2% Fib.
Are sellers about to hop in right here?
Loonie traders might opt to wait for the release of Canada’s jobs report, as this could seal the deal for the BOC‘s next moves.
Analysts are counting on a 15K increase in hiring, slower compared to the earlier 104K increase. This might bring the jobless rate a notch higher from 5.0% to 5.1% in January.
Stronger than expected figures, however, might still be enough to keep the Canadian dollar supported. In that case, EUR/CAD could resume the drop to the swing low near the 1.4350 handle.
The 100 SMA is below the 200 SMA, after all, suggesting that resistance levels are more likely to hold than to break.
Weak data, on the other hand, could spur more gains and take the pair up to the next upside barriers. Note that Stochastic is dipping into the oversold region to hint at a potential pickup in bullish pressure.
Comments are closed.