We will be watching closely to see if the pound shows any resilience against the yen.
04.09.2023
- European Investor Sentiment Index
- Switzerland: Real GDP for the Second Quarter
Last weekend, the Canadian dollar fell against the yen after Canada’s June real GDP, released on the 1st, deteriorated from 0.3% the previous month to -0.2%. The CAD/JPY pair dropped by approximately 110 pips, from 107.825 to 106.678.It fell below the daily 20-day moving average (MA). However, on the weekly chart, it remains above the 10-day MA, and since the uptrend continues, we will monitor price movements during U.S. trading hours.
European currencies fell, with the GBP/JPY pair dropping by only about 95 pips, even as other yen crosses fell by more than 1 yen, following the release of the UK’s August manufacturing and services PMIs last weekend, which improved to 43.0 from 42.5 the previous month.GBP/JPY had been attempting to break above its high set on the 22nd of last month, but last weekend’s decline signaled that this attempt had failed. However, as the pair remains just below the daily 20-day moving average, we will be watching price action during European trading hours.
Today, at 3:00 PM, Germany’s trade balance and Sweden’s current account balance will be released; at 4:00 PM, Switzerland’s second-quarter real GDP;Turkey’s Consumer Price Index and Producer Price Index at 4:00 PM, Brazil’s Consumer Price Index at 5:00 PM, the Eurozone Investor Sentiment Index at 5:30 PM, Israel’s benchmark interest rate and remarks by German Bundesbank President Nagel at 10:00 PM, remarks by ECB President Lagarde at 10:30 PM, and South Korea’s foreign exchange reserves at 11:00 PM.We will be watching closely to see if the pound shows any resilience against the yen.
Author: Keisuke Sakurai
