Will the yen's appreciation trend continue?

Will the yen's appreciation trend continue?

09.09.2021

Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by lower stock prices, lower interest rates, and higher oil prices. The decline came as weak U.S. employment data released last weekend weighed on stock prices, while concerns about inflation remain unresolved and the Federal Reserve has indicated that it has no intention of changing its course toward tapering asset purchases.

In the foreign exchange market, following yesterday’s announcement that the policy rate would remain unchanged at 0.25%, the CAD/JPY pair has continued its downward trend since the start of the week and is currently trading around 86.6. From a technical perspective, the pair has already broken below the 200-period moving average (MA) on the 4-hour chart, and since the 200-period MA on the daily chart is around 86.1, we will be closely monitoring whether there is any change in price movement at this level.

Today’s economic indicators include Germany’s trade balance at 15:00 during Asian trading hours, remarks by RBA Deputy Governor Devel at 17:35, the ECB’s policy rate decision and statement at 20:45 during European trading hours, U.S. initial jobless claims at 21:30, U.S. weekly natural gas inventories at 23:30, and U.S. weekly crude oil inventories at 24:00.24:05: US – Daily: Remarks by the President of the San Francisco Fed; 25:00: Canada – Remarks by BOC Governor McClem; 26:00: US – 30-year Treasury auction; 27:00: US – Remarks by Williams, President of the New York Fed. We will be watching closely to see if today’s economic data releases will alter the gradual strengthening of the yen.