Markets May Keep a Close Eye on the Canadian Dollar’s Movements Following Its Rise on the Back of Strong Retail Sales
25.09.2023
- Dallas Fed Manufacturing Activity Index
- Turkey: Equipment Utilization Rate
In the U.S. currency markets last weekend, the Canadian dollar rose against the yen after Canada’s September retail sales figures, released on the 22nd, came in higher than expected at 0.3%, up from 0.1% the previous month. The CAD/JPY pair rose from 109.367 to 110.415.The price moved significantly toward this month’s high range. However, on the daily chart, the CAD/JPY RSI is approaching 70, and the weekly RSI is at a similar level. Therefore, we should be wary of a correction during European trading hours.
European currencies saw the euro trade in a 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 repeatedly 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 closely monitoring whether it breaks below this support level.
Today’s schedule includes Norway’s Credit Indicator at 15:00, Hungary’s Total Wages at 15:30, Turkey’s Capacity Utilization Rate and Economic Sentiment Index at 16:00, Germany’s IFO Business Climate Index and the Philippines’ Unemployment Rate at 17:00, and the UK’sCBI Retail Sales, at 9:00 PM UK time: Brazil’s Consumer Confidence Index, at 9:30 PM UK time: U.S. Chicago Fed National Activity Index, at 10:00 PM UK time: Eurozone’sremarks by ECB President Lagarde, at 11:30 PM: U.S. Dallas Fed Manufacturing Activity Index, and at 12:30 AM: U.S. 6-month Treasury bill auction. I intend to carefully monitor the movement of the Canadian dollar, which has risen on the back of strong retail sales.
Author: Keisuke Sakurai
