Should We Keep an Eye on the Rising Canadian Dollar?
17.11.2021
- U.S. MBA Mortgage Applications Index
- Canada: Housing Price Index
Yesterday, the three major U.S. stock indices all extended their gains, creating a “risk-on” sentiment characterized by rising stock prices, higher interest rates, and lower crude oil prices. The U.S. industrial production index for October, released yesterday, came in at 1.6%, compared to market expectations of 0.7%. WTI crude oil fell slightly to $79.0.
In line with the rise in the U.S. dollar, the Canadian dollar has maintained its momentum, with the CAD/JPY pair climbing from 91.06 to 91.48.Meanwhile, the USD/CAD pair has also risen from 1.249 to 1.256, shifting from a corrective downtrend on the daily chart to a rebound. We will need to carefully assess whether this upward trend will continue, while monitoring the strength of the U.S. dollar.
Today, at 16:00: UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index; at 19:00: Eurozone Consumer Price Index; at 20:00: South African Retail Sales;at 9:00 PM, the U.S. MBA Mortgage Applications Index; at 10:30 PM, the Canadian Consumer Price Index, the Canadian House Price Index, U.S. Housing Starts, and U.S. Building Permits; at 11:00 PM, remarks by a member of the Bank of England’s Monetary Policy Committee (MPC); at 11:10 PM, remarks by U.S. Federal Reserve Bank of Williams:President of the New York Fed, at 24:30: U.S. weekly crude oil inventories, at 25:00: remarks by U.S. Federal Reserve Governor Bowman, at 27:00: U.S. 20-year Treasury auction, and at 6:05 the following day: remarks by U.S. Chicago Fed President Evans.We will monitor currency strength and weakness while paying close attention to the overlapping remarks by key officials during U.S. trading hours.
Author: Keisuke Sakurai
