October 19, 2021
EUR/USD: The euro strengthened on Monday as the dollar dipped after data showed production at U.S. factories fell by the most in seven months in September, erasing earlier gains on expectations that the Federal Reserve may be closer to raising interest rates than previously expected. U.S. manufacturing output was hurt as the continued global shortage of manufactured goods had led to a decline in car output, further evidence that supply constraints are hampering economic growth. If the dollar declines any further, the euro may keep its uptrend. Immediate resistance can be seen at 1.17. A breakout to the upside can trigger growth towards 1.1760.
BUY STOP 1.17/TP 1.1760/SL 1.1680
USD/CAD: The Canadian dollar strengthened against the U.S. dollar on Monday as oil prices rose and data showed slower economic growth in China, with the currency holding near a three-month high. World stock markets dipped after data showed slower-than-expected growth of China’s economy last quarter, and surging prices for oil, one of Canada’s major exports, fed inflation concerns. U.S. crude oil futures were up nearly 1% at $83 a barrel, amid a recovery in demand and high natural gas and coal prices encouraging users to switch to fuel oil and diesel for power generation. Immediate support is seen at 1.2320. A breakout below could take the pair towards 1.2250.
SELL STOP 1.2320/TP 1.2250/SL 1.2350
GBP/USD: The British pound rose against the dollar on Monday after Bank of England Governor Andrew Bailey sent a fresh signal that the central bank plans to raise interest rates. During an online panel discussion on Sunday organized by the Group of 30 consultative group, Bailey said the BoE will “have to act” in its monetary policy meetings on the risk of medium-term inflation. He continued to believe that the recent jump in inflation would be temporary, but that a surge in energy prices would push it higher and make its climb last longer. Investors are expecting CPI September inflation data for Britain due on Wednesday. Immediate resistance can be seen at 1.38. A breakout to the upside can trigger growth towards 1.39.