With Canada’s CPI Unchanged, Should We Watch for Further Gains in the CAD/JPY Pair?
20.12.2023
- U.S. Existing-Home Sales
- Europe: Current Account Balance
In the U.S. currency market the previous day, 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 about 2 yen, from 106.188 to 108.275.The price extended its gains to just below the 200 EMA on the 4-hour chart. Given that this rise occurred even as the November industrial producer price index, released on the same day, came in lower than the previous month, we will be closely monitoring whether the pair will extend its gains to this month’s high of 109.649.
European currencies saw the euro rebound 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, the price has reversed its downward trend without touching the 10-period MA, so it will be interesting to see if further gains occur during European trading hours.
Today’s economic indicators include the German Producer Price Index, the Turkish Consumer Price Index, the UK Consumer Price Index, the UK Retail Price Index, and the UK Producer Price Index at 16:00; the Eurozone Current Account at 18:00; the U.S. MBA Mortgage Applications Index at 21:00;at 22:30, the U.S. current account balance; at 24:00, U.S. existing home sales and the Conference Board Consumer Confidence Index; at 24:30, U.S. weekly crude oil inventories; and at 27:00, a U.S. 20-year Treasury auction.With Canada’s CPI remaining unchanged, we’ll be watching to see if the CAD/JPY pair can sustain its upward momentum.
Author: Keisuke Sakurai
