Plan your strategies for the trading week ahead with key insights from our team.
The Euro-dollar eased below the 1.09 mark this week and the 200-dma at 1.1050 level seems like it will be sheltering offers before the ECB meeting next Thursday. Markets expect at least a 10 basis point cut in deposit rates and 10 billion euro worth of expansion in monthly bond purchases.
The USDCAD could ease below 1.35 level this week and the Bank of Canada is expected to remain on hold and keep its rate unchanged at 0.50%. The sustainable recovery in oil prices and a consolidation at about $35 levels will certainly give a reason for a further advance down to the 200dma at 1.3295, and a break below this level could well bring the 1.30 mark on the radar. Whether the USDCAD could keep its slide down to 1.30 level is also very much dependent on what’s going on in the US.
It has been the best week for Asian shares in the last five months, but optimism is now subject to Chinese data risks. China will once again be under close watch next week. We have February trade data and January inflation data lined up, and it could well trigger some swings in the global risk appetite, and in gold and commodities complex and also in the Australian dollar.
-ECB MEETING, EUR/USD
-CHINA TRADE, INFLATION