Should we keep an eye on the potential for an uptick following ECB President Lagarde’s remarks?
16.11.2023
- Philadelphia Fed Manufacturing Index
- Israel: Third-Quarter GDP
In the U.S. currency market yesterday, the Canadian dollar rose against the yen despite the fact that Canada’s September manufacturing sales, released yesterday, fell to 0.4% from 0.7% the previous month.The CAD/JPY pair rose from 109.732 to 110.674, forming a strong bullish candle on the daily chart. The pair has been rising along the 20-day moving average (MA) since the beginning of the month, and since the 20-day MA is also serving as a solid support line on the weekly chart, we should keep an eye on the strength of the Canadian dollar heading into the second half of the month.
European currencies fell against the U.S. dollar as the euro weakened following yesterday’s release of September industrial production data for the eurozone, which showed a year-on-year decline of 6.9%, worsening from the previous month’s 5.1% drop.The EUR/USD pair fell by just over 50 pips from 1.0885 to 1.0831. It has fallen below the 20-period moving average (MA) on the hourly chart, indicating a pause in the short-term uptrend. However, as it remains above the 10-period MA on the 4-hour chart, we will be watching for further gains in the euro during European trading hours.
Today’s schedule includes Hong Kong employment data at 5:30 PM, Israel’s Q3 GDP at 8:00 PM, remarks by ECB President Lagarde at 8:30 PM, remarks by Fed Vice Chair Barr at 9:10 PM, Canadian housing starts at 10:15 PM, U.S. initial jobless claims at 10:30 PM, and remarks by Fed President Mester:Cleveland Fed President remarks, U.S. import/export price indices, U.S. Philadelphia Fed Manufacturing Index, U.S. industrial production at 11:15 PM, U.S. NAHB Housing Market Index at 12:00 AM, U.S. Fed Governor Waller remarks at 12:30 AM, and U.S. Fed Governor Cook remarks at 2:00 AM.We will monitor remarks by ECB President Lagarde while assessing the euro’s upside potential.
Author: Keisuke Sakurai
