Attention may turn to Canadian economic indicators released during U.S. trading hours
18.09.2023
- Canada: Housing Starts
- M.I. NAHB Housing Market Index
Last weekend, the Canadian dollar rose against the yen ahead of today’s U.S. economic data releases. The CAD/JPY pair rose from 109.028 to 109.486, following the 20-period moving average on the hourly chart. However, trading began with a 10-pip gap down at the start of the week, and the pair has continued to face resistance during Asian trading hours.On the daily chart, which is a higher time frame, the market has posted six consecutive bullish candles. Therefore, while considering the possibility of a corrective pullback, we should prepare for today’s economic data release.
Despite the European Union’s seasonally adjusted July trade balance, released on the 15th, falling to €2.9 billion from €12.5 billion the previous month, the euro rebounded against the U.S. dollar.The EUR/USD pair rose from 1.0633 to 1.0687. The band walk along the -3σ line of the hourly Bollinger Bands has ended, and the price has recovered to the centerline. However, on the higher timeframe (4-hour chart), the price remains below the 20-day moving average (MA), so we should exercise caution in determining the direction until the price closes above the 20-day MA.
Today, at 4:00 PM, the Czech Republic’s Producer Price Index; at 8:00 PM, Brazil’s IGP-10 Inflation Index; at 8:30 PM, Turkey’s Housing Price Index; at 9:00 PM, the Philippines’ Consumer Price Index and Mexico’s Total Demand;at 9:15 PM, Canada’s Housing Starts; at 9:30 PM, Canada’s Producer Price Index, Industrial Production, and Raw Material Prices; at 11:00 PM, the U.S. NAHB Housing Market Index; and at 12:30 AM, the U.S. 6-month Treasury bill auction.This week is packed with major events, including the U.S. FOMC meeting and the Bank of Japan’s Monetary Policy Meeting. First, I want to carefully assess the relative strength and weakness of various currencies.
Author: Keisuke Sakurai
