Will the Canadian dollar, which fell due to weak retail sales, rebound, or should we wait and see?
23.10.2023
- Chicago Fed National Activity Index
- Mexico Economic Activity Index
Last weekend, the Canadian dollar fluctuated against the yen after Canada’s September retail sales data, 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 that closed below the 20-day moving average on the daily chart following last weekend’s pullback, traders should watch for signs that the Canadian dollar’s momentum may be 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-on-year decline of 12.6% to 14.7%. The euro/pound pair rose to 0.8739 before retreating, falling to 0.8706—below the day’s opening price.Although the EUR/GBP formed a bearish candle with a long upper shadow following last weekend’s decline, the weekly chart still shows an intact uptrend, so we should closely monitor the direction of the market.
Today, the Singapore Consumer Price Index is scheduled for 2:00 PM, the Turkey Consumer Confidence Index for 4:00 PM, Taiwan’s Industrial Production and Unemployment Rate for 5:00 PM, the Mexico Economic Activity Index and the Philippines Money Supply for 9:00 PM, the U.S. Chicago Fed National Activity Index for 9:30 PM, and the Israel Benchmark Interest Rate for 10:00 PM.23:00: Eurozone Consumer Confidence Index; 24:30: U.S. 6-month Treasury bill auction; 30:00: South Korea Producer Price Index. We will closely monitor whether the Canadian dollar, which fell due to weaker retail sales, will rebound.
Author: Keisuke Sakurai
