|Day's Range||1.327 - 1.334|
|52 Week Range||1.2787 - 1.3728|
Today, long-awaited, crucial event for the future of the American Dollar – Jackson Hole Symposium. Speech from Jerome Powell to be precise. Today is the day, where we should find out the FED’s sentiment towards the USD and their outlook on the monetary policy.
Market attention might stay over Canadian June MoM Retail Sales figures. On the daily chart, ATR depicted 66 pips volatility forecast for the day.
A scheduled FED Chair Powell speech from the Jackson Hole symposium is the main event of the day. He may feel Trump over his shoulder…
US Weekly Jobless Claim data and Markit PMI data release remain at the center stage for Thursday. On the Canadian side, the June MoM Wholesale Sales data will come out at around 12:30 GMT.
It’s a busy day ahead as the markets react further to the FOMC meeting minutes. Chatter from Jackson Hole may overshadow the stats…
Cable continued to stay consolidated near 1.1264 level on Wednesday. Upbeat July Canadian Consumer Price Index (CPI) remained as the primary driver that lifted the CAD currency.
The major focus for the day would remain over the July Canadian CPI data release and FOMC minutes. Since the start of August, the USD/CAD had hardly made a move below the Ichimoku Clouds until today.
On the weekly chart, the USD/CAD pair had recently crossed below a 1-year old slanting support line, signaling reversal trend. Later today, the market would witness the release of the API Weekly Crude Oil Stock Change calculated since August 16.
The RBA looks set to hold on rates near-term. For the day ahead, a lack of stats will leave the markets exposed to any trade war chatter.
On the weekly chart, the USD/CAD pair was heading upwards, targeting the center line of the Bollinger Bands. Today, traders can take a back seat as the economic calendar lacks significant USD-specific and CAD-specific events.
Global aversion to the risk continues. President Trump easing his policy on the trade war with China did not help much here. Inverted yield curve is doing its job spooking the market participants.
US July Housing Market data releases would remain as the critical point of interest for traders today. On the daily chart, the Loonie pair was heading to the south side, recalling the Death Cross of mid-July.
Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 97.840.
After taking a bounce off from the 2:1 Gann line earlier this month, the USD Index was underway to sustain a strong positive trend. Bulls appeared to stay in the lead on the daily chart.
The economic calendar stays quite light on Wednesday in terms of USD/CAD-impacting economic events. Crude dropped following API Crude data report revealing mounting US Crude Inventories.
On the 4H Chart, the Loonie pair appeared to travel well above the Green Ichimoku Clouds, sustaining the near-term positive trend. On the Crude side, Saudi stays underway efforts to boost the commodity’s price with the IPO of Aramco.
The economic calendar stays lightly weighted amid lack of substantial economic events throughout the day. On the weekly chart, the bulls seem to step down as the pair has broken below a 2:1 Gann line.
The Chinese Yuan pair continued to stay sustained within a multi-month uptrend channel. Canadian currency slipped following disappointing Jobs data thereby allowing the Loonie pair to climb fresh heights.
After a long time, the market will witness some CAD-specific economic data releases today. On the hourly chart, though the price actions remained in the lower vicinity of the Bollinger Bands, the pair was heading to the north.
Looking at the day ahead, it’s a busy day for the Pound, with a heavy economic calendar to provide direction. Geopolitics will also remain in focus.
Based on the early price action and the current price at 97.475, the direction of the September U.S. Dollar index the rest of the session is likely to be determined by trader reaction to the intermediate 50% level at 97.510 and the intermediate Fibonacci level at 97.230. Inside this zone are three Gann angles at 97.260, 97.365 and 97.450. Holding inside this zone is likely to lead to a choppy two-sided trade.
On the weekly chart, the USD/CAD bulls appeared to roll up sleeves and head north side. Weekly Jobless Claim data releases stay at the top in the trader’s daily event watchlist.