Risk Aversion Prevails, Canada’s CPIs on Today’s Agenda

Risk-off Trading Continues as Oil Tumbles Again

The dollar continued trading higher against most of the other G10 currencies. It gained the most versus NOK, GBP and NZD in that order, while it was found virtually unchanged against JPY, CHF and EUR.

Euro Stoxx 50 — Technical Outlook

From around the beginning of last week, Euro Stoxx 50 continues to move sideways, roughly between the 2781 and 2955 levels. The price is currently trading below all of its EMAs on the 4-hour chart, which may be seen as a bearish indication. However, as long as the index remains inside that small range, we will stay neutral and wait for a clear break through one of its sides before considering a further directional move.

UK CPIs Slow, Inflation Torch Passed to Canada

The pound was the second loser in line, perhaps coming under selling pressure after the top official at UK’s foreign ministry said that PM Johnson may stick to his December deadline for reaching a trade accord with the EU.

GBP/CAD — Technical Outlook

From around the beginning of this month, GBP/CAD is seen moving sideways and seems that the pair is coiling, as it is trading between two short-term tentative lines, a downside one taken from the high of March 31 stand an upside one drawn from the low of April 6 th. We can also say that the pair is forming somewhat of a symmetrical triangle and as long as the pair remains inside that pattern, we will stay neutral.

As for the Rest of Today’s Events

Apart from Canada’s CPIs for March, we also get the US EIA (Energy Information Administration) weekly report on crude oil inventories. Expectations are for a 15.15mn barrels inventory build following a 19.25mn increase the week before. The API report was not released yesterday. Instead, it is expected to be out tonight. As it is always the case, no forecast is available for this report.

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