Loonie on a Rollercoaster on Tariff Threats, Canadian CPI Watched
| Action Insight Daily Report 1-21-25 |
Loonie on a Rollercoaster on Tariff Threats, Canadian CPI Watched |
Dollar weakened broadly in early US session as reports from The Wall Street Journal indicated that Donald Trump, during his inauguration, will only outline his trade vision but avoid imposing new tariffs for now. While this temporarily calms market fears of immediate disruptions, the situation remains dynamic, and unexpected developments could trigger sharp reversals, especially if the WSJ report proves inaccurate. According to the report, Trump plans to issue a memorandum directing federal agencies to study trade policies and assess trade relationships with key partners, including China, Canada, and Mexico. The memorandum is expected to focus on addressing persistent trade deficits and investigating unfair trade and currency practices. Specific directives include examining China’s compliance with the 2020 trade deal and reviewing the US-Mexico-Canada Agreement, which is up for re-evaluation in 2026. These steps suggest Trump is prioritizing groundwork over immediate action, but the spotlight remains on the possibility of future tariffs.... |
USD/JPY Daily Outlook Daily Pivots: (S1) 155.17; (P) 155.88; (R1) 156.33; More... Intraday bias in USD/JPY is back on the downside with breach of 154.97 temporary low. Sustained break of 55 D EMA (now at 154.61) will extend the fall from 158.86 to 38.2% retracement of 139.57 to 158.86 at 151.49 next. Nevertheless, firm break of 156.67 resistance will argue that the pull back has completed, and turn bias back to the upside for retesting 158.86 high instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PSI Dec | 47.9 | 49.5 | | 07:00 | GBP | Claimant Count Change Dec | 0.7K | 10.3K | 0.3K | -25.1K | | 07:00 | GBP | ILO Unemployment Rate (3M) Nov | 4.40% | 4.30% | 4.30% | | 07:00 | GBP | Average Earnings Excluding Bonus 3M/Y Nov | 5.60% | 5.50% | 5.20% | | 07:00 | GBP | Average Earnings Including Bonus 3M/Y Nov | 5.60% | 5.60% | 5.20% | | 10:00 | EUR | Germany ZEW Economic Sentiment Jan | 15.1 | 15.7 | | 10:00 | EUR | Germany ZEW Current Situation Jan | -93 | -93.1 | | 10:00 | EUR | Eurozone ZEW Economic Sentiment Jan | 16.9 | 17 | | 13:30 | CAD | CPI M/M Dec | -0.70% | 0.00% | | 13:30 | CAD | CPI Y/Y Dec | 1.70% | 1.90% | | 13:30 | CAD | CPI Median Y/Y Dec | 2.50% | 2.60% | | 13:30 | CAD | CPI Trimmed Y/Y Dec | 2.50% | 2.70% | | 13:30 | CAD | CPI Common Y/Y Dec | 1.90% | 2.00% |
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