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 U.S. currency market the previous day, as geopolitical risks related to Russia subsided, no increase in volatility was observed, and trading remained range-bound throughout the day.Ahead of today’s Consumer Price Index release, 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, while the pair has rebounded, supported by the 20-period moving average (MA) on the 4-hour chart, the 4-hour RSI has begun to pull back from above 70, so traders should remain cautious regarding price movements during European trading hours.
Today’s schedule includes Taiwan’s unemployment rate at 17:00, Hong Kong’s trade balance at 17:30, remarks by ECB President Lagarde, remarks by MPC member Dingra at 17:15, Canada’s Consumer Price Index and U.S. durable goods orders at 21:30,at 10:00 PM, the U.S. Housing Price Index and the U.S. S&P/Case-Shiller Home Price Index; at 11:00 PM, U.S. New Home Sales, the U.S. Consumer Confidence Index, and the U.S. Richmond Fed Manufacturing Index; and at 2:00 AM, a U.S. 5-year Treasury auction.We’ll be watching the Canadian CPI to see if it comes in below the previous reading of 4.4%, as well as the Canadian dollar’s price movements following the release of these indicators.
Author: Keisuke Sakurai
