Possible GBPCAD correction
Today we face news from the UK regarding general retail sales which are expected to be slightly negative versus the previous result, including the annual. Market start sentiment has been relatively negative due to concerns of interest rate hike by the FED. The DAX, CAC40,FTSE100 fell at the open by 0.9%,0.6% and 0.9% respectively.
Sentiment for the week's close has been rather gloomy, including the Asian close, which has also been dragged down causing the Nikkei to fall 1%. Yesterday the Dow Jones had its worst session in over a year, falling over 600 points following the US Federal Reserve news.
As for the European central bank (ECB), it is expected to start cutting interest rates in June, but the UK has experienced such high inflation that it is causing problems for the Bank of England (BoE). As we said, retail sales have fallen by 2.3% on a monthly basis and the weather has prevented the textile sector from performing normally at this time of year.
In the afternoon, Canadian retail sales will be reported and the United States will close the afternoon with data on sales of durable materials, aerospace, defense and transportation products, closing with the expectations of the Michigan FED and consumer sentiment and inflation closing with Baker Hughes reserves data.
If we look at the daily chart currently the Sterling vs Loonie cross (GBPCAD), since May 12 it started a bullish breakout, and pierced this Tuesday the highs zone generating currently an attempt to reach highs locating at 1.74379. On the bell aspect we see a monocamp with price control zone (POC) at 1.71630 Canadian dollars per pound sterling. And it has given us a signal on RSI of a possible reversal back to the mean due to it being at 17.13%.
We'll see how the news today for a possible sharp correction this week's close.
Ion Jauregui - Analista AT
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Sentiment for the week's close has been rather gloomy, including the Asian close, which has also been dragged down causing the Nikkei to fall 1%. Yesterday the Dow Jones had its worst session in over a year, falling over 600 points following the US Federal Reserve news.
As for the European central bank (ECB), it is expected to start cutting interest rates in June, but the UK has experienced such high inflation that it is causing problems for the Bank of England (BoE). As we said, retail sales have fallen by 2.3% on a monthly basis and the weather has prevented the textile sector from performing normally at this time of year.
In the afternoon, Canadian retail sales will be reported and the United States will close the afternoon with data on sales of durable materials, aerospace, defense and transportation products, closing with the expectations of the Michigan FED and consumer sentiment and inflation closing with Baker Hughes reserves data.
If we look at the daily chart currently the Sterling vs Loonie cross (GBPCAD), since May 12 it started a bullish breakout, and pierced this Tuesday the highs zone generating currently an attempt to reach highs locating at 1.74379. On the bell aspect we see a monocamp with price control zone (POC) at 1.71630 Canadian dollars per pound sterling. And it has given us a signal on RSI of a possible reversal back to the mean due to it being at 17.13%.
We'll see how the news today for a possible sharp correction this week's close.
Ion Jauregui - Analista AT
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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