Should we keep an eye on the direction of the pound against the yen?
09.08.2023
- U.S. MBA Mortgage Applications Index
- U.S. 10-Year Treasury Auction
In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s June trade balance—released yesterday—showed the deficit widening from -3.44 billion CAD in the previous month to -3.73 billion CAD. The CAD/JPY pair fell from 107.091 to 105.893.It broke below the 20-period moving average on the 4-hour chart. On the daily chart, the CAD/JPY pair is moving toward the upper end of its 106–108 yen range, so we will be watching to see if the Canadian dollar recovers toward the end of the week.
Among European currencies, the pound saw a seesaw movement against the yen. The GBP/JPY pair fell from 182.945 to 181.382 before recovering back to the 182 level. It was a day where the market direction was extremely difficult to gauge. From a technical perspective, the GBP/JPY pair has been forming higher lows on the daily chart, and the daily RSI is also trending upward, so it will be worth watching whether the pound gains strength during U.S. trading hours.
Today’s schedule includes the U.S. MBA Mortgage Applications Index at 8:00 PM, India’s Money Supply at 8:30 PM, Brazil’s Retail Sales at 9:00 PM,Mexico’s Consumer Price Index and Producer Price Index at 9:30 PM, Canada’s Housing Starts at 9:30 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, Russia’s Consumer Price Index at 1:00 AM, and the U.S. 10-Year Treasury Auction at 2:00 AM. I want to carefully assess the direction of the pound against the yen.
Author: Keisuke Sakurai
