Market participants may be wary of the Canadian dollar’s direction as the CPI rises again

Market participants may be wary of the Canadian dollar’s direction as the CPI rises again

16.08.2023

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen despite the fact that Canada’s July Consumer Price Index, released yesterday, rose to 3.3% year-over-year from the market forecast of 2.9%. The CAD/JPY pair fell from 108.277 to 107.661, dropping below the 75-period moving average on the hourly chart.Technically, the pair is positioned just below the 20-period moving average (MA) on the 4-hour chart, and on the higher-timeframe daily chart, it has entered a corrective downtrend from the upper boundary of the uptrend line. Therefore, we should remain cautious of further declines in CAD/JPY during U.S. trading hours.

European currencies saw the euro rise against the yen after Germany’s August ZEW Economic Sentiment Index, released yesterday, improved to -12.3 from -14.7 the previous month. The euro/yen pair rose from 158.537 to 159.329 before falling back.During today’s Asian trading session, the euro has faced resistance at higher levels and is currently trading around 158.678. We will be watching the euro’s direction closely to see if the pullback has paused and a renewed upward move is on the horizon.

Today’s schedule includes the UK Consumer Price Index and UK Producer Price Index at 3:00 PM, Eurozone Q2 GDP and Eurozone Industrial Production at 6:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, Canadian Housing Starts at 9:15 PM, and Canadian Wholesale Sales at 9:30 PM,U.S. housing starts, at 10:15 PM U.S. industrial production, at 11:30 PM U.S. weekly crude oil inventories, at 3:00 AM U.S. FOMC minutes release, and at 5:10 AM NZ RBNZ Governor Orr’s remarks. We must remain highly vigilant regarding the direction of the Canadian dollar following another rise in the CPI.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran