Will the Canadian dollar, which fell due to weaker retail sales, rebound, or should we wait and see?
23.10.2023
- Chicago Federal Reserve Bank's National Activity Index
- Mexico Economic Activity Index
Last weekend, the Canadian dollar fluctuated against the yen after Canada’s September retail sales figures, released on the 20th, showed that core month-over-month growth had slowed from 1.0% to 0.1%.The CAD/JPY pair rose from 109.097 to 109.667 before pulling back toward the end of the U.S. trading session.It ultimately closed at 109.256. Since the CAD/JPY pair formed a bullish candle with an upper shadow on the daily chart—falling below the 20-day moving average due to last weekend’s pullback—we should watch to see if the Canadian dollar’s momentum is losing steam.
European currencies fell as the euro weakened against the pound following the release of Germany’s September Producer Price Index (PPI), which showed a deterioration from a year-over-year decline of 12.6% to 14.7%.The EUR/GBP pair rose to 0.8739 before reversing course. It fell to 0.8706, below that day’s opening price. Although the EUR/GBP formed a bearish candle with a long upper shadow following last weekend’s decline, the upward trend on the weekly chart remains intact, so we should closely monitor the direction of the market.
Today, at 14:00, Singapore’s Consumer Price Index; at 16:00, Turkey’s Consumer Confidence Index; at 17:00, Taiwan’s Industrial Production and Unemployment Rate; at 21:00, Mexico’s Economic Activity Index and the Philippines’ Money Supply;at 9:30 p.m., the U.S. Chicago Fed National Activity Index; at 10:00 p.m., Israel’s benchmark interest rate; at 11:00 p.m., the Eurozone Consumer Confidence Index; at 12:30 a.m., the U.S. 6-month Treasury bill auction; and at 12:30 a.m., South Korea’s Producer Price Index.We will carefully assess whether the Canadian dollar, which fell due to weaker-than-expected retail sales, will rebound.
Author: Keisuke Sakurai
