Will the Canadian dollar, now the strongest currency, continue to rise? All eyes are on its direction.
30.03.2023
- U.S. Fourth-Quarter GDP
- Remarks by U.S. Treasury Secretary Yellen
In the previous day’s U.S. currency trading, the Canadian dollar emerged as the strongest currency after Bank of Canada Deputy Governor Gravel stated that “the BOC’s quantitative tightening is likely to end between late 2024 and the first half of 2025.” The CAD/JPY pair rose by approximately 180 pips, from 96.157 to 97.981.The pair broke above the 200-period EMA on the 4-hour chart. On the weekly chart, the formation of a triple top has been completed, and upward pressure is strengthening again, so we should watch for further gains in the Canadian dollar heading into the weekend.
European currencies saw the euro trade in a narrow range against the U.S. dollar after Germany’s April GfK consumer confidence index, released yesterday, improved to -29.5 from the previous reading of -30.5.The EUR/USD pair traded in a narrow range between 1.0818 and 1.0871, continuing to lack direction as it fluctuated around the 20-period moving average on the hourly chart. Even during today’s Asian session, the EUR/USD has not broken out of yesterday’s range. We will need to watch for any directional movement following the release of economic indicators during the U.S. session.
Today, at 3:00 PM, Turkey’s Economic Confidence Index; at 5:00 PM, the ECB’s Monthly Report; at 9:00 PM, Germany’s Consumer Price Index; at 9:30 PM, U.S. Initial Jobless Claims, U.S. Q4 GDP, and U.S. Personal Consumption Expenditures;at 11:30 PM: U.S. weekly natural gas inventories; at 1:00 AM: Remarks by SNB Board Member Meckl of Switzerland; at 1:45 AM: Remarks by Barkin, President of the Richmond Fed; andBoston Fed President, at 02:00 AM: U.S. Kashkari: Minneapolis Fed President, and at 04:45 AM: U.S. Treasury Secretary Yellen. We will be watching for any directional movement in the Canadian dollar, which has become the strongest currency.
Author: Keisuke Sakurai
