Morning Insights 12th January

Simon Alagbe

Analyst


Instrument: USDCAD

The commodity supported Loonie has enjoyed a relatively smooth ride against the greenback as crude oil continue to recover. The recovery in oil prices overshadowed sentiment of a faster pace of rate hikes from the Federal Reserve. Demand for the greenback is expected to resurface as an uptick in the US bond yield could provide the required impetus ahead of the eagerly awaited inflation data from the US later today. 


Technicals 

The pair got rejected around the 1.25443 support zone with the formation of a dragonfly doji, a signal that price might fly northward. I expect the pair to trade higher from around the support zone with a stop loss below the support region at around 1.24940 and a take profit at 1.26630.



Fundamentals

CPI m/m (USD) 2:30 PM

Core CPI m/m (USD) 2:30 PM

FOMC Member Brainard Speaks (USD) 4:00 PM

10-y Bond Auction (USD) 7:01 PM


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