It remains to be seen whether the Canadian dollar, which has been performing well, will maintain its momentum during U.S. trading hours.

It remains to be seen whether the Canadian dollar, which has been performing well, will maintain its momentum during U.S. trading hours.

23.01.2024

In the U.S. currency market yesterday, the Canadian dollar weakened during U.S. trading hours, causing the CAD/JPY pair to decline.The CAD/JPY pair fell from 110.393 to 109.679, briefly dipping below the 75-period moving average on the hourly chart. On the daily chart, a band walk along the +2σ line of the Bollinger Bands has been observed, and the RSI still has room to rise toward 70. We will closely monitor whether the Canadian dollar rebounds against the yen following a period of consolidation.

Ahead of this Thursday’s ECB meeting, the euro strengthened during U.S. trading hours. The EUR/AUD pair rose from 1.6486 to 1.6569, with the 10-day moving average acting as a support level. However, as the pair has shown signs of weakening again during today’s Asian session, we need to carefully assess whether the euro can regain momentum against the Oceania currencies ahead of the ECB meeting the day after tomorrow.

Today, at 9:30 AM, the Australian NAB Business Confidence Index; at 2:00 PM, Japanese supermarket sales and the Singapore Consumer Price Index; at 4:00 PM, the South African Leading Indicator and the Turkish Consumer Confidence Index, as well as UK public sector net debt; at 4:30 PM, Hungarian total wages;at 5:00 PM, Taiwan’s Industrial Production; at 10:30 PM, Canada’s New Home Price Index; at midnight, the Eurozone Consumer Confidence Index and the U.S. Richmond Fed Manufacturing Index; at 3:00 AM, the U.S. 2-Year Treasury Auction; and at 6:45 AM the following day, New Zealand’s Q4 Consumer Price Index.We will closely monitor whether the Canadian dollar, which has been performing strongly, will maintain its momentum during U.S. trading hours.