All eyes are on whether the Canadian dollar will fall after the Bank of Canada (BOC) kept its policy rate at 5.00%
06.12.2023
- UK Construction PMI
- U.S. ADP Employment Report
In yesterday's U.S. currency trading, the Canadian dollar fell against the yen ahead of today's BOC policy rate announcement. The CAD/JPY pair dropped from 108.842 to 107.991. The decline came as the pair encountered resistance at the 20-period moving average (MA) on the 4-hour chart. Since the 20-period MA is also acting as a resistance level on the daily chart, we need to remain cautious to see if further declines will occur following today's BOC meeting, where the rate is expected to remain unchanged at 5.00%.
Ahead of remarks today by Bank of England Governor Bailey, the pound fell against the yen. The GBP/JPY pair dropped from 186.186 to 185.067, falling just below the 200-period simple moving average (SMA) on the 4-hour chart. On the daily chart, the pair has broken below the 20-period moving average (MA) and is beginning to trend downward toward the 75-period MA; therefore, we should monitor the RSI and MACD indicators closely while assessing the market’s direction.
Today’s schedule includes German manufacturing new orders at 4:00 PM, Taiwan’s consumer price index at 5:00 PM, the UK construction PMI at 6:30 PM, Eurozone retail sales at 7:00 PM, remarks by BOE Governor Bailey at 8:00 PM, and the US MBA mortgage applications index at 9:00 PM,Mexico’s Consumer Price Index, at 10:15 PM US ADP Employment Report, at 10:30 PM Canada’s International Merchandise Trade, Canada’s Labor Productivity, US Nonfarm Productivity, and US Trade Balance, at 12:00 AM Canada’s BOC Policy Rate and Statement, and at 12:30 AM US Weekly Crude Oil Inventories.We will be closely monitoring today’s BOC meeting to see if the policy rate remains unchanged at 5.00% and whether the Canadian dollar will decline as a result.
Author: Keisuke Sakurai
