With Canada's CPI unchanged, attention turns to the upside potential of the CAD/JPY pair
20.12.2023
- U.S. Existing Home Sales
- Europe: Current Account Balance
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 its gains to 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, 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 at 6:00 PM;at 21:00, the U.S. MBA Mortgage Applications Index; 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, the U.S. 20-Year Treasury Auction. We will be watching for further upside potential in the CAD/JPY pair, which rose despite the Canadian CPI remaining unchanged.
Author: Keisuke Sakurai
