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 falling stock prices, lower interest rates, and higher crude oil prices.The decline came as weak U.S. employment data released last weekend weighed on stock prices, while inflation concerns remain unresolved and the Federal Reserve has signaled that it has no intention of changing its course toward tapering asset purchases.

In the foreign exchange market, following yesterday’s policy rate announcement—in which the policy rate was held steady 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. Since the 200-period MA on the daily chart is around 86.1, we will be closely monitoring whether price action changes 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, and during European trading hours at 20:45, theECB policy rate and statement, during U.S. trading hours at 21:30: U.S. initial jobless claims, at 23:30: U.S. weekly natural gas inventories, at 24:00: U.S. weekly crude oil inventories, and at 24:05: U.S. daily:Remarks by the President of the San Francisco Fed; at 25:00, remarks by BOC Governor McClem; at 26:00, U.S. 30-year Treasury auction; and at 27:00, 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 appreciation of the yen.