All eyes are on whether Canada’s CPI will fall below the previous reading of 4.4% year-over-year
27.06.2023
- Canada: Consumer Price Index
- U.S. S&P/Case-Shiller Home Price Index
In the previous session, the U.S. dollar saw little movement throughout the day, as geopolitical risks related to Russia subsided and volatility remained subdued.Ahead of today’s release of the Consumer Price Index, the CAD/JPY pair rose slightly from 108.605 to 109.269. As upward momentum toward the recent high of 110.537—set on September 13 of last year—is gaining strength, we will be watching for directional cues during U.S. trading hours.
European currencies saw the euro fluctuate against the yen after Germany’s June IFO Business Climate Index, released yesterday, came in at 88.5—below both the market forecast of 90.7 and the previous reading of 91.7. The EUR/JPY pair fluctuated between 155.737 and 156.723.From a technical perspective, EUR/JPY has rebounded, supported by the 20-period moving average (MA) on the 4-hour chart. However, since the 4-hour RSI has begun to pull back from above the 70 level, caution is warranted regarding price movements during European trading hours.
Today’s schedule includes Taiwan’s unemployment rate at 5:00 PM, Hong Kong’s trade balance at 5:30 PM, remarks by ECB President Lagarde, remarks by MPC member Dingra at 5:15 PM, Canada’s Consumer Price Index and U.S. durable goods orders at 9:30 PM,at 10:00 PM, the U.S. Housing Price Index and the S&P/Case-Shiller Home Price Index; at 11:00 PM, U.S. New Home Sales, the U.S. Consumer Confidence Index, and the Richmond Fed Manufacturing Index; and at 2:00 AM, a U.S. 5-year Treasury auction. We will be watching closely to see if Canada’s CPI comes in below the previous reading of 4.4%, as well as the market reaction to these indicators and the movement of the Canadian dollar.
Author: Keisuke Sakurai
