Markets may be keeping a close eye on the Canadian dollar’s movements following its rise on the back of strong retail sales

Markets may be keeping a close eye on the Canadian dollar’s movements following its rise on the back of strong retail sales

25.09.2023

Last weekend, the Canadian dollar rose against the yen after Canada’s September retail sales figures, released on the 22nd, came in stronger than expected at 0.3%, up from 0.1% the previous month. The CAD/JPY pair rose from 109.367 to 110.415.Prices moved significantly toward this month’s high range. However, on the daily chart, the CAD/JPY RSI is approaching the 70 level, and the weekly RSI is at a similar level. Therefore, we should be cautious of a correction during European trading hours.

European currencies saw the euro trade in a tight range against the U.S. dollar after Germany’s September PMI figures, released last weekend, showed a recovery in both the manufacturing and services sectors compared to the previous month.The EUR/USD pair traded within a range of 1.0614 to 1.0673, fluctuating as it was capped by the 200-period moving average on the 4-hour chart. On the weekly chart, the pair is positioned just below the support line in the 1.06 range, so we will be watching closely to see if it breaks below this support level.

Today, at 3:00 PM, Norway’s credit indicators; at 3:30 PM, Hungary’s total wages; at 4:00 PM, Turkey’s capacity utilization rate and economic sentiment index; at 5:00 PM, Germany’s IFO Business Climate Index and the Philippines’ unemployment rate; and at 7:00 PM, the UK’sCBI Retail Sales, at 9:00 PM UK time, Brazil’s Consumer Confidence Index at 9:30 PM, the US Chicago Fed National Activity Index at 10:00 PM, remarks by ECB President Lagarde at 11:30 PM, the US Dallas Fed Manufacturing Activity Index at 12:30 AM, and a US 6-month Treasury bill auction at 1:30 AM.We intend to cautiously monitor the movement of the Canadian dollar, which has risen on the back of strong retail sales.