Will the Canadian CPI rise from the previous month's 4.0%, leading to a rise in the Canadian dollar?

Will the Canadian CPI rise from the previous month's 4.0%, leading to a rise in the Canadian dollar?

17.10.2023

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen after Canada’s August wholesale sales, released yesterday, improved from 0.2% to 2.3% month-over-month. The CAD/JPY pair rose from 109.214 to 109.982. This rise occurred while the U.S. dollar, its neighbor, faced resistance against the yen.Technically, CAD/JPY is rising from the bottom of the 20-period moving average (MA) on the 4-hour chart, and on the daily chart, the RSI is rising near 55.7, just shy of overbought territory. We will need to assess carefully whether the Canadian dollar will continue to strengthen against the yen.

European currencies saw the pound rise against the yen yesterday after MPC member Pill stated, “The BOE has done a lot regarding inflation, but we cannot say our job is done simply because inflation has fallen.” The GBP/JPY pair rose from 181.140 to 182.744, climbing just below the 200-period SMA on the 4-hour chart.With the UK CPI release scheduled for tomorrow, traders should remain cautious of a potential rise in the pound depending on the CPI results.

Today’s schedule includes UK employment figures at 3:00 PM, the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index at 6:00 PM, Brazil’s inflation index at 8:00 PM, remarks by William, President of the New York Fed, at 9:00 PM, Canadian housing starts at 9:15 PM, Canadian government bond turnover at 9:30 PM,Canada’s Consumer Price Index, and U.S. Retail Sales; at 10:00 PM, remarks by U.S. Federal Reserve Governor Bowman; at 10:15 PM, U.S. Industrial Production and U.S. Capacity Utilization; at 11:00 PM, U.S. Business Inventories and U.S. NAHB Housing Market Index; and at 2:00 AM, remarks by German Bundesbank President Nagel.Keep an eye on how the Canadian dollar reacts to the data, particularly whether Canada’s CPI rises from the previous month’s 4.0%.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran