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.
USD/CAD: bears are weak
2019-11-11 • Updated
BUY 1.305 SL 1.2985 TP1 1.313 TP2 1.317 TP3 1.328
SELL 1.275 SL 1.2805 TP1 1.265 TP2 1.259 TP3 1.244
On the daily chart of USD/CAD, bears tried to return the pair to the triangle many times but failed. It shows a weakness of bears. If the pair breaks the resistance at 1.305, it will be able to go to 127.2% and 200% targets of senior and junior AB=CD patterns.
On H1, bears will control the trading until the pair is below 1.275. If the pair breaks the support at 1.275, the “Broadening wedge” pattern will be implemented.
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.
Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
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.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
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.