Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
AUD/USD: bulls are acting
2019-11-11 • Updated
TP1 0.7505 TP2 0.754 TP3 0.764
On the daily chart of AUD/USD, bulls still hope to implement the “Wolfe waves” pattern. To succeed, they need to pull the pair out of the downward channel, break the correctional high near 0.7485 and implement the “Bat” pattern with the 88.6% target.
On H1, the “Broadening wedge” pattern keeps forming. The break of the resistance at 0.744 will implement the “Shark” pattern with the 113% target. After that, there are risks of the pullback within the 5-0 transformation.
As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
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?
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.