Will Market Participants Wait and See How the Canadian Dollar/Yen Pairs Rebound After the Drop?
25.03.2024
- U.S. New Home Sales
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
In the U.S. currency markets last weekend, the Canadian dollar fell against the yen after Canada’s January retail sales figures, released on the 22nd, came in at -0.3%, down from the previous month’s 0.9%. The CAD/JPY pair fell from 112.181 to 110.026.The price fell to the vicinity of the 200-period EMA on the hourly chart. However, during today’s Asian session, the -2σ Bollinger Band on the hourly chart has acted as support, and the pair is testing the upside; therefore, we will be watching price action closely during the European session.
Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 12,675 to 1.2575. The 4-hour RSI fell to 30.On the daily chart, the 200-day SMA is acting as support, but since the daily RSI continues to decline after touching 70, we will be watching closely to see if the GBP/USD pair will experience a temporary rebound.
Today’s schedule includes the release of the minutes of the Bank of Japan (BOJ) meeting at 8:50, the Japan Leading Economic Index at 14:00, and at 20:00, the UKCBI Retail Trade Survey, at 9:15 PM: U.S. remarks by Bostic, President of the Atlanta Fed, at 9:30 PM: U.S. Chicago Fed National Activity Index, at 11:00 PM: U.S. new home sales, at 11:15 PM: U.K.MPC Member Mann’s remarks at 23:30, the U.S. Dallas Fed Manufacturing Activity Index at 23:30, remarks by U.S. Federal Reserve Governor Cook at 23:30, and a U.S. 2-year Treasury auction at 26:00. I intend to cautiously monitor the resilience of the CAD/JPY pair following its decline.
Author: Keisuke Sakurai
