Keep an eye on the upside potential of the resilient Canadian dollar
08.05.2024
- Philippines: Trade Balance
- U.S. Weekly Crude Oil Inventories
In yesterday’s U.S. currency trading, the Canadian dollar fluctuated against the yen after the April Ivey Purchasing Managers’ Index (PMI) for Canada, released yesterday, rose to 63.0 from 57.5 the previous month. The CAD/JPY pair traded between 112.502 and 113.072, with price action straddling the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 200-period SMA is acting as support, and on the daily chart, the price has rebounded from the 75-period MA, so we will be watching for potential upside in the Canadian dollar during European trading hours.
European currencies rose against the yen as the euro gained ground following yesterday’s release of March retail sales data, which showed a year-over-year improvement from the previous month’s 0.7% decline to a 0.7% increase.The euro/yen pair rose from 165.521 to 166.568. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices are rising along the 10-period MA, and on the daily chart, a perfect order has formed from the 200-period simple moving average (SMA) down to the 20-period MA.
Today’s schedule includes the Philippine trade balance at 10:00, German industrial production at 15:00, the Riksbank’s policy rate and statement at 16:30, Taiwan’s trade balance at 17:00, the U.S. MBA Mortgage Applications Index at 20:00, Brazilian retail sales at 21:00, U.S. wholesale inventories at 23:00,23:30: U.S. weekly crude oil inventories; 24:00: Remarks by U.S. Federal Reserve Vice Chair Jefferson; 24:45: Remarks by U.S. Boston Fed President Collins; 26:00: U.S. 10-year Treasury auction; and 26:30: Remarks by U.S. Federal Reserve Governor Cook. I intend to carefully monitor the upside potential of the firm Canadian dollar.
Author: Keisuke Sakurai
