Giles Coghlan LLB, Lth, MA
Financial Source
This week's economic calendar is packed with potential trading opportunities. We start off in Canada, where CPI data on Tuesday could set the tone for currency movements. Traders should watch for figures that come in below expectations, signaling that rate cuts could be on the horizon by the Bank of Canada. Such an outcome could spur a bullish scenario for the USDCAD pair, presenting a prime trading opportunity.
Moving across the Atlantic, the focus shifts to the UK with labour data also due on Tuesday. If the numbers are weaker than anticipated, it could provide a solid rationale for selling the pound. This is particularly pertinent in light of recent comments from Governor Bailey, who hinted at the possibility of forthcoming rate cuts. The pound's response to this data will be critical, and traders will need to be agile in their strategies.
Governor Bailey is slated to speak later in the week, and his remarks could further influence GBP trading dynamics. His speech is eagerly anticipated as it might clarify or adjust market expectations regarding the UK's monetary policy path.
Down under, Australian employment data will also capture the market's attention. With copper prices currently experiencing an uptick—potentially boosting the Australian economy—strong job numbers could reinforce the AUD. This presents a unique interplay between commodity prices and national economic indicators, which could lead to favourable trading conditions for the Aussie.
The week will wrap up back in the UK with the release of retail sales data. The implications of this report could be amplified by the outcomes of the earlier CPI release and Governor Bailey's subsequent comments. Depending on these factors, the retail sales data could either confirm the week's trends or introduce new dynamics, offering additional trading opportunities.
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Editors’ Picks
EUR/USD treads water around 1.1900
EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.
GBP/USD looks weak near 1.3670
GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.
USD/JPY drops toward 155.00 as focus shifts to US data
USD/JPY meets fresh supply and inches closer toward 155.00 in the Asian session on Tuesday. The Japanese Yen holds the upper hand over the US Dollar after Japanese Prime Minister Sanae Takaichi led the ruling Liberal Democratic Party to a historic landslide win and on intervention talks. Traders brace for key US economic data that could offer more clues on the Federal Reserve's monetary policy.
Editors’ Picks
EUR/USD treads water around 1.1900
EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.
GBP/USD looks weak near 1.3670
GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.
Gold the battle of wills continues with bulls not ready to give up
Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.
AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B
The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.
Dollar drops and stocks rally: The week of reckoning for US economic data
Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.
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