Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
The USD/CAD consolidated at the resistance of the Moving Average and psychological levels
Information is not investment advice
Wednesday’s Canadian Ivey PMI release was worse than the forecast. On the H4 chart of USD/CAD, the price is consolidating at the 200-period Moving Average to test its resistance at the psychological level of 1.3200. A further rise would meet the resistance levels of 1.3233, 1.3287 and 1.3334 left during October price action. The bearish reversal would have support levels placed at 1.3118 and the strong one at 1.3050.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.