The British monthly GDP is announced on Friday at 09:00 MT time.
Market updates on October 22
Key events ahead:
Canada’s core retail sales – 15:30 MT (12:30 GMT)
BOC business outlook survey – 17:30 MT (14:30 GMT)
Parliament Brexit Vote – 21:00 MT (18:00 GMT)
- Yesterday, the speaker John Bercow rejected the possibility of a significant vote. The news pulled the GBP down a little bit. Will the vote happen today? If it is, GBP/USD may retest the resistance at 1.2985. The next resistance will lie at 1.3011. After that, the 1.3059 level will be in bulls' focus. In case of a vote's delay, the pair will slide below the lower border of the ascending trading channel and target the support at 1.29. After that, the 1.2864 level will be in the focus of bears. The next support level will be placed at 1.2834.
- USD/CAD formed a Doji candlestick on the 4-hour chart and bounced towards the resistance level at 1.3088. Today, the CAD traders may take advantage of the release of Canada’s core retail sales at 15:30 MT. According to the forecasts, the indicator will remain unchanged. If the actual level is higher, USD/CAD will slide below the 1.3077 level and move down to the next support at 1.3066. After that, reaching the 1.3052 level seems possible. From the upside, the key levels to watch are 1.3088, 1.3098 and 1.3128. RSI is moving within an oversold zone.
- Yesterday, USD/JPY fell lower and tested the support at 108.36. If the risk sentiment is off, the further support levels will lie at 108.13 and 107.91. On the other hand, the pair may rise to the resistance level at 108.73. If it is broken, it is recommended to pay attention to the 108.9 and 109.42 levels.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.