Market participants are likely to closely monitor the direction of the euro, which is falling but showing resilience at lower levels.

Market participants are likely to closely monitor the direction of the euro, which is falling but showing resilience at lower levels.

20.11.2023

Last weekend, the Canadian dollar fell against the yen after Canada’s October government bond turnover, released on the 17th, worsened to a negative CAD 15.1 billion from the previous month’s negative CAD 8.5 billion.With the Japanese yen emerging as the strongest currency, the CAD/JPY pair fell from 109.618 to 108.714, erasing nearly all of its gains since the start of the month. From a technical perspective, the pair is trading just below the 10-week moving average (MA), and the weekly RSI has entered a downtrend after touching 70, so we should watch for signs of a continued decline.

European currencies saw the euro fall slightly against the yen after the final October consumer price index for the eurozone, released on the 17th, came in at 2.9%—unchanged from the previous month—while the core index stood at 4.2%.The euro/yen pair fell from 163.600 to 162.156. It then rebounded late in the U.S. trading session and closed at 163.271. While other yen crosses have formed bearish candles on the weekly chart, the euro/yen pair has maintained a bullish candle on the weekly chart, so investors should keep an eye on the euro’s strength in the latter half of November.

Today’s schedule includes Germany’s Producer Price Index and Sweden’s Industrial Inventories at 16:00, Taiwan’s Current Account Balance at 17:20, Eurozone Construction Output at 19:00, Israel’s Unemployment Rate at 20:00, Turkey’s Central Government Debt at 23:30, the U.S. Leading Economic Index at 24:00, and the U.S. 6-Month Treasury Bill Auction at 25:30.26:00: U.S. remarks by Barkin, President of the Richmond Fed; 27:45: U.K. remarks by Bailey, Governor of the Bank of England; 30:00: South Korea’s Producer Price Index growth rate. We will closely monitor the direction of the euro, which is falling but showing firm support at lower levels.