A puzzling re-opening of the markets

Canada’s June CPI rates in the forefront

There were mixed signals in the FX market today, with the USD possibly continuing to lead the market. With now US high-impact data releases on the calendar, we expect fundamentals to lead the markets. Yet north of the US border, we note the release of Canada’s CPI rates for June, which could move the Loonie. Should Canada’s CPI rates for June accelerate, we may see the Loonie getting some much needed support, while a possible wider than expected easing of inflationary pressures could weigh on the CAD. 

Oil prices continue to rise

Oil prices continued to rise on Friday and during today’s Asian session, as oil market worries remain present for the situation in the Persian Gulf. Please note that the US and Iran exchange salvos for a ninth day in a row, practically threatening further the closure of the Straits of Hormuz, a vital oil shipping route. A possible enhancement of market worries for the issue could push oil prices even further.

Will the bearish tendencies for US equities be renewed?

US equities displayed notable bearish tendencies last week, especially in the Tech-sector. Market worries for possible overvaluations led to a correction lower, reflected mostly on stocks related to AI. As the markets restart their engines after the weekend, it remains to be seen whether the markets’ worries are maintained and able to send US stock markets lower, while a possible easing of worries could allow US equities to rise.

Other highlights for today

Today we get Canada’s CPI rates for June and in tomorrow’s Asian session we get New Zealand’s Q2 CPI rates. 

As for the rest of the week

On Tuesday, we get UK’s employment data for May and Germany’s ZEW indicators for July. On Wednesday we get Japan’s trade data and UK’s CPI rates, both for June. On Thursday, we get Australia’s employment data for June, UK’s CBI trends for industrial orders for July, Canada’s retail sales for May, and the weekly initial jobless claims figure, we note Turkey’s CBT interest rate decision and from the Euro Zone, ECB’s interest rate decision. On Friday we get July’s preliminary PMI figures of Australia, Japan, France, Germany, the Euro Zone as a whole, the UK and the US. On Friday we get Japan’s CPI rates for June and UK’s retail sales also for June.   

Charts to keep an eye out

USD/CAD continued to drop breaking the 1.4020 (S1) support line. We maintain a bearish outlook for the pair given its downward motion for the past week. The RSI indicator is nearing the reading of 30, signalling an intensifying bearish market sentiment that may push the pair’s price action even lower. Should the bears continue to lead the pair’s price action, we set as the next possible target the 1.3880 (S1) support level. For a bullish outlook, which we currently consider as a remote scenario, we would require the pair’s price action to break the 1.4020 (R1) resistance line and continue higher to break also the 1.4145 (R2) resistance level.

USD/CAD continued to drop breaking the 1.4020 (S1) support line. We maintain a bearish outlook for the pair given its downward motion for the past week. The RSI indicator is nearing the reading of 30, signalling an intensifying bearish market sentiment that may push the pair’s price action even lower. Should the bears continue to lead the pair’s price action, we set as the next possible target the 1.3880 (S1) support level. For a bullish outlook, which we currently consider as a remote scenario, we would require the pair’s price action to break the 1.4020 (R1) resistance line and continue higher to break also the 1.4145 (R2) resistance level.

USD/CAD Daily Chart

• Support: 1.3880 (S1), 1.3730 (S2), 1.3550 (S3)
• Resistance: 1.4020 (R1), 1.4145 (R2), 1.4255 (R3) 

WTI Daily Chart

• Support: 82.00 (S1), 76.60 (S2), 71.85 (S3)
• Resistance: 88.60 (R1), 93.30 (R2), 98.50 (R3) 

إخلاء المسؤولية:

لا تُعد هذه المعلومات نصيحة استثمارية أو توصية بالاستثمار، وإنما تُعد تواصلاً تسويقيًا. لا تتحمل IronFX أي مسؤولية عن أي بيانات أو معلومات مقدمة من أطراف ثالثة تم الإشارة إليها أو الارتباط بها في هذا التواصل.