Will there be any changes in currency strength and weakness while the U.S. is on holiday, or will the market remain on the sidelines?
19.06.2023
- Manufacturing and Mining Production
- U.S. markets are closed for a holiday
Last weekend, the Canadian dollar rose against the yen after wholesale sales data showed a decline of 1.4%, down from the previous reading of -0.1%. The CAD/JPY pair rose by approximately 190 pips, from 105.738 to 107.658, forming an uptrend along the 10-period moving average on the hourly chart.From a technical perspective, while the daily RSI for CAD/JPY has risen to 77, the weekly RSI has not yet reached 70. We will be watching closely to see if further gains occur during U.S. trading hours.
The euro rose against the yen after the preliminary May consumer price index for the eurozone, released on Friday the 16th, showed no change from the previous month’s year-on-year rate of 6.1%. The euro/yen exchange rate rose from 153.083 to 155.528, continuing to hit new highs for the year.This was further bolstered by ECB President Lagarde’s announcement at last weekend’s ECB meeting that interest rates would be raised at the next meeting. The yen’s weakening trend is likely to continue until the Bank of Japan makes changes to its monetary policy.
Today’s schedule includes the Turkish Consumer Confidence Index at 4:00 PM European time, Hong Kong’s employment statistics at 5:30 PM, and during U.S. trading hours, Canada’s Industrial Production, Raw Materials Price Index, and Producer Price Index at 9:30 PM, followed by the U.S. NAHB Housing Market Index at 11:00 PM.Although U.S. markets are closed today for a holiday, we will carefully monitor the situation to see if there are significant shifts in currency strength during U.S. trading hours.
Author: Keisuke Sakurai
