With Canada’s CPI unchanged, attention turns to the upside potential of the CAD/JPY pair

With Canada’s CPI unchanged, attention turns to the upside potential of the CAD/JPY pair

20.12.2023

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen after Canada’s November Consumer Price Index, released yesterday, remained unchanged from the previous month at 3.1% year-over-year. The CAD/JPY pair rose by approximately 2 yen, from 106.188 to 108.275.The price extended just below the 200-period EMA on the 4-hour chart. Given that this rise occurred despite the November industrial producer price index, released on the same day, also coming in lower than the previous month, we will be watching closely to see if the pair will extend its gains to this month’s high of 109.649.

European currencies saw the euro rally sharply against the U.S. dollar after the final figures for the Eurozone’s November consumer price index, released yesterday, showed that the year-over-year core rate remained unchanged from the previous month at 3.6%.The EUR/USD pair rose from 1.0907 to 1.0986, with the rally tracking the 10-period moving average (MA) on the 4-hour chart. On the daily chart, however, the price has reversed its decline without touching the 10-period MA, so it will be worth watching whether further gains materialize during European trading hours.

Today’s economic indicators include the German Producer Price Index, Turkish Consumer Price Index, UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index at 4:00 PM; the Eurozone Current Account Balance at 6:00 PM;at 9:00 PM: U.S. MBA Mortgage Applications; at 10:30 PM: U.S. Current Account Balance; at 12:00 AM: U.S. Existing Home Sales and Conference Board Consumer Confidence Index; at 12:30 AM: U.S. Weekly Crude Oil Inventories; and at 3:00 AM: U.S. 20-Year Treasury Auction. With the Canadian CPI remaining unchanged, we will be watching for further upside potential in the CAD/JPY pair.

Past Market Reports

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2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

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5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran