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GBP: Today's CPI Could Bring Pressure To Increase Interest Rates

Published 09/16/2014, 03:21 AM
Updated 07/09/2023, 06:31 AM


Asia Round Up

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Economic Calendar

GBP: Despite most attention being on Scottish Referendum today's CPI could bring further pressure to increase interest rates, regardless of the outcome. Taking into account that UK is only 2 of G7 nations to not have their growth forecast cut by OECD then we may see buying pressure if CPI comes in strongly above expectations.
EUR: German ZEW is a 'nice to know' indicator but I doubt it will make EUR/USD move too much going into FED/FOMC meetings tomorrow.
CAD: The text to Poloz speech is released 15 mins before the listed time. BoE is in a neutral stance (as it has been for over 1 year) but any hawkish comments may see USD/CAD edge lower from the highs. A more neutral or Dovish speech should help USD/CAD up towards bullish targets mentioned below.

TECHNICAL ANALYSIS:

USD/CAD: Potential Swing low has formed

USD/CAD Hourly Chart

Whilst USD/CAD hovers near the recent highs it does still allow for another leg higher. H4 is close to completing a Bullish Engulfing candle on higher volume to suggest a swing low has established above the weekly pivot / 1.103 support zone.

Initial target is the 1.11 high then 1.1159.

We may see an initial run up to MR2 but if we see weakness around these levels it highlights potential for a lower high to form (and an eventual double/triple top).

A break below Weekly pivot confirms change in trend and targets 1.095.

USD/JPY: Favours buy-the-dip strategy

USD/JPY Hourly Chart

Similar to USD/CAD, there is a potential swing low near the recent highs. Due to the multi-time frame momentum being bullish we have to assume another high until bearish divergences appear on multiple time frames.

- As long as we remain above 106.95 the target remains 107.80
​- A break below 106.95 targets 106.1

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