Should we keep an eye on the upside potential of the Canadian dollar, which is rising behind Oceania’s currencies?

Should we keep an eye on the upside potential of the Canadian dollar, which is rising behind Oceania’s currencies?

10.10.2023

In the U.S. currency market the previous day, the Canadian dollar rose, showing strength second only to the Oceania currencies.USD/CAD fell from 1.3678 to 1.3580, marking a decline of just under 100 pips. Technically, USD/CAD has paused after falling just below the 200-period SMA on the 4-hour chart and is currently positioned just below the 20-period MA on the daily chart. We will closely monitor whether the US dollar continues to weaken against the Canadian dollar.

Despite the improvement in Germany’s August industrial production, which was released yesterday—showing a year-on-year decline of 2.0% compared to the previous month’s 2.1% drop—the euro fell against the yen.The EUR/JPY pair fell from 157.698 to 156.515. It lost the temporary advantage it had gained by trading above the daily 20-day moving average (MA) and has slipped back below it. However, with the daily 75-day MA acting as support just below, we should exercise caution in determining whether the euro will continue to weaken against the yen.

Today’s economic indicators include Norway’s Consumer Price Index at 3:00 PM, Sweden’s Industrial Production and GDP at 3:30 PM, Hungary’s Consumer Price Index at 4:00 PM, Turkey’s Employment Statistics and Industrial Production at 6:00 PM, the U.S. NFIB Small Business Optimism Index at 7:00 PM, and at 10:30 PM, remarks by Bostic, President of the Atlanta Fed:Remarks by Bostic, President of the Atlanta Fed; at 23:00, U.S. Wholesale Inventories; at 26:00, U.S. 3-Year Treasury Auction; at 26:30, Remarks by Waller, Member of the FOMC; and at 28:00, Remarks by Kashkari, President of the Minneapolis Fed. We will closely monitor the upside potential of the Canadian dollar, which is rising second only to Oceania currencies.