Keep an eye on the direction of the CAD/JPY pair following the BOC’s decision to keep interest rates unchanged

Keep an eye on the direction of the CAD/JPY pair following the BOC’s decision to keep interest rates unchanged

07.03.2024

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen following the Bank of Canada’s (BOC) policy rate announcement, in which the policy rate was held steady at 5.00%—in line with market expectations.The CAD/JPY pair rose from 109.935 to 110.620, temporarily recovering to the 75-period moving average (MA) line on the hourly chart. However, during today’s Asian trading session, cross-yen pairs fell across the board, causing the CAD/JPY pair to drop to 109.879.

European currencies rose as the euro strengthened against the U.S. dollar following yesterday’s release of January retail sales data for the eurozone, which showed a shift from a 1.1% month-over-month decline to a 0.1% increase.The EUR/USD pair rose from 1.0842 to 1.0915. An uptrend originating from the 20-period moving average (MA) on the 4-hour chart was observed. Since the daily chart also shows an uptrend originating from the 20-period MA, we will be watching price movements during European trading hours.

Today’s schedule includes Japan’s domestic and foreign securities investment at 8:50, Australia’s trade balance at 9:30, Switzerland’s employment statistics at 15:45, Germany’s new manufacturing orders at 16:00, Taiwan’s consumer price index at 17:00, South Africa’s current account balance at 18:00,at 9:00 PM: Mexico’s Consumer Price Index; at 9:30 PM: U.S. Challenger Layoff Announcements; at 10:15 PM: Eurozone ECB Policy Rate and Statement; at 10:30 PM: U.S. Initial Jobless Claims; at 10:30 PM: Canada’s Housing Starts;U.S. Trade Balance and Canada’s International Merchandise Trade at 10:30 PM, and remarks by Fed Chair Powell at 12:00 AM. We intend to carefully assess the direction of the CAD/JPY pair, which rose following the BOC’s decision to keep interest rates unchanged.