At present marks the observance of Martin Luther King Jr.’s birthday, a U.S. Federal vacation. Accordingly, American equities and bond markets are
At present marks the observance of Martin Luther King Jr.’s birthday, a U.S. Federal vacation. Accordingly, American equities and bond markets are closed, with CME futures scheduled for an early halt. The foreign exchange and cryptocurrency markets are open, though many U.S. foreign exchange liquidity suppliers are out of the workplace till Tuesday.
Because of the truth it’s MLK Day, the U.S. financial calendar is vacant. Nevertheless, North America did function a key quantity out of Canada. Canadian Housing Begins (Dec.) got here in at 228,300, above expectations (227,000) however down from November’s determine (246,000). That is an attention-grabbing quantity and one which displays the seasonality of dwelling constructing in Canada. All in all, it’s extra of a constructive than a adverse for the CAD.
On the political entrance, sitting POTUS Donald Trump is right down to his closing 48 hours in workplace. Tomorrow, political insiders count on Trump to challenge greater than 100 pardons. Whereas a few of the clemency will probably be for these concerned within the markets, not a lot is anticipated by way of volatility. Nevertheless, greater than 25,000 Nationwide Guardsmen are stationed in Washington D.C. to fight any social unrest which will come up. If there’s a shock terror assault or important rioting within the coming days, we might even see a pullback in threat asset pricing.
Up to now, Martin Luther King Jr. Day has introduced restricted motion. Let’s check out the USD/CAD and see the place the Loonie at the moment stands.
Quiet Buying and selling For Martin Luther King Jr. Day
The USD/CAD is buying and selling in a non-committal technical space on the day by day chart. Charges are hanging simply above 1.2760, barely north of draw back help.
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Backside Line: If we see a pullback within the USD/CAD over the subsequent 24 hours, a shopping for alternative from the Every day SMA could come into play. Till Tuesday’s shut, I’ll have purchase orders within the queue from 1.2726. With an preliminary cease loss at 1.2694, this commerce produces 25 pips on a sub-1:1 threat vs reward ratio.
Volumes will proceed to be skinny till Tuesday’s official foreign exchange open attributable to Martin Luther King Jr. Day. For those who’re lively within the markets, be looking out for sporadic worth motion and uneven circumstances.