The Bank of Canada will publish the rate statement together with the interest rate on October 28, at 17:00 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 US dollar turned to the upside on Monday. Let's discuss what to expect next from the market.
Three main drivers of the market: the stimulus package, the US presidential election and the coronavirus. Let's look how market reacts.
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 14:45 MT time.