BOC Governor Speech Headlines Quiet Day For Economic Calendar

A dearth of economic data could make for a quiet trading session on Wednesday. Aside from a speech with possible policy implications, there isn’t much in the way of compelling data.

In Europe, a report on French consumer confidence will make its way through the financial markets at 06:45 GMT. The April consumer confidence index is projected to hold steady at 100.

The Centre for European Economic Research will deliver its monthly report on Swiss business expectations at 08:00 GMT. The report could influence movement in the Swiss franc.

Shifting gears to North America, the US Mortgage Bankers Association will report on weekly mortgage applications for the period ended 20 April. The report is scheduled for release at 11:00 GMT.

Meanwhile, the US Energy Information Administration (EIA) will release its weekly crude inventory report at 14:30 GMY. Crude stockpiles are forecast to decline by more than 2.6 million barrels in the week ended 20 April.

In terms of monetary policy, Bank of Canada (BOC) Governor Stephen Poloz will deliver a speech at 20.15 GMT. The BOC has taken a step back from its hawkish outlook now that the Canadian economy is showing signs of weakening. That said, Canada is still expected to raise interest rates this year.

The economic calendar heats up in the latter half of the week as the European Central Bank (ECB) delivers a verdict on interest rates and the US government reports on durable goods orders and gross domestic product (GDP). The Japanese central bank will also deliver a rate verdict later this week, which should give traders plenty to consider heading into the weekend.

USD/CAD

After a tumultuous week, the Canadian dollar began its long road to recovery on Tuesday as the greenback failed to extend its rally. At the time of writing, the USD/CAD exchange rate was valued at 1.2837, where it was little changed from the previous close. The pair has skyrocketed more than 200 pips since last Thursday amid rising US bond yields.

EUR/USD

Europe’s common currency pushed higher on Tuesday as the dollar lost ground on major currencies following a bullish start to the week. EUR/USD bottomed below 1.2200 during the previous session but has since rebounded to around 1.2223. Immediate resistance is seen at 1.2260, followed by 1.2290, which corresponds to the 23 April high. On the flipside, support is located at 1.2215, followed by 1.2180.

GBP/USD

Cable attempted a recovery on Tuesday, but gains were firmly capped below 1.4000. At the time of writing, GBP/USD was valued at 1.3978, where it was little changed. The 1.4000 level continues to offer resistance. A firm bottom is difficult to gauge at this point given cable’s precipitous declines over the past week.