Should we focus on the upside potential of European currencies, which are showing strength?
15.11.2022
- Number of New and Existing Home Sales
- Harker (U.S.): Remarks by the President of the Federal Reserve Bank of Philadelphia
In yesterday's U.S. currency trading, the Canadian dollar rose against the yen as the yen weakened. The CAD/JPY pair rose by approximately 140 pips from 104.544 to 105.933, rebounding to just short of the 20-period moving average on the 4-hour chart.The pair is attempting to rise again during today’s Asian session. Since it has been forming higher lows technically, if it breaks above the recent high of 105.933 with a solid candle on the 4-hour chart or longer timeframe, we would like to follow the upward trend.
European currencies rose against the yen as the year-on-year growth rate for September industrial production in the eurozone, released yesterday, surged to 4.9% from the market forecast of 2.9%.The EUR/JPY pair rose by approximately 180 pips, from 143.470 to 145.238. It showed a stronger rebound compared to U.S. currencies. Since the rebound is being supported by the 75-day moving average (MA) on the daily chart, we will be watching closely to see if the rebound continues heading into U.S. trading hours.
Today, at 4:00 PM, UK unemployment rate; at 4:45 PM, French CPI; at 7:00 PM, German ZEW Economic Sentiment Survey, Eurozone Q3 GDP, and Eurozone trade balance;at 10:30 PM: Canada’s wholesale sales and manufacturing shipments, the U.S. Producer Price Index, and the U.S. New York Fed Manufacturing Index; at 11:00 PM: Canada’s existing home sales, remarks by Fed Governor Cook, and remarks by Harker, President of the Philadelphia Fed; and at 12:00 AM: remarks by Fed Governor Barr.We will be watching for upside potential in European currencies, which are currently showing strength.
Author: Keisuke Sakurai
