Market Watchers to Monitor the Canadian Dollar’s Resilience Following the Drop Caused by Lower Canadian CPI
22.05.2024
- Goolsbee (U.S.): Remarks by the President of the Chicago Fed
- U.S. MBA Mortgage Applications Index
In the U.S. currency market the previous day, the Canadian dollar fell against the yen immediately after the release of Canada’s April Consumer Price Index (CPI), which showed a year-over-year decline of 0.2 percentage points from the previous month’s 2.9% to 2.7%. The CAD/JPY pair fell from 114.829 to 114.150.The price fell to just below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the price briefly dipped below the 20-period moving average (MA), while on the daily chart, it is finding support at the 10-period MA; therefore, we should watch for any recovery momentum during U.S. trading hours.
European currencies fell against the yen as Germany’s April Producer Price Index (PPI), released yesterday, worsened year-on-year from -2.9% in the previous month to -3.3%.The euro/yen pair fell from 169.939 to 169.218, breaking below the 75-period moving average (MA) on the hourly chart. However, the 20-period MA is providing support on the 4-hour chart, and the daily chart shows rising highs despite some consolidation. Therefore, we will be closely monitoring the pair’s potential for recovery during European trading hours.
Today’s schedule includes Japan’s trade balance at 8:50, the RBNZ policy rate and statement at 11:00, the UK’s Consumer Price Index, Producer Price Index, and retail sales at 15:00, South Africa’s Consumer Price Index at 17:00, remarks by ECB President Lagarde at 17:05, the US MBA Mortgage Applications Index at 20:00,21:45 UK: Remarks by BOE Deputy Governor Breeden, 22:40 US: Remarks by Chicago Fed President Goolsbee, 23:00 US: Existing Home Sales, 23:30 US: Weekly Crude Oil Inventories, 26:00 US: 20-Year Treasury Auction, and 27:00 US: Release of FOMC Minutes.We will carefully assess the resilience of the Canadian dollar, which fell following the decline in Canada’s CPI.
Author: Keisuke Sakurai
