All eyes are on whether the weak Canadian dollar will rebound during U.S. trading hours
29.07.2024
- UK Consumer Credit Balances
- Sweden: Real GDP
Last weekend, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 111.968 to 110.741. The rebound from the previous day was met with resistance at the 75-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair has been falling since touching the 20-period moving average, while the daily chart shows a battle just below the 200-period simple moving average. We should watch to see if the CAD/JPY pair will fall to the 75-period moving average on the weekly chart, which is in the high 108 yen range.
Among European currencies, the Swiss franc was the weakest. The franc-yen pair fell from 175.114 to 173.524.On the hourly chart, the price fell from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 20-period MA is acting as resistance, and the price has broken below the 75-period MA, with the RSI dropping to 34. We will need to monitor the direction closely to see if the Swiss franc continues to weaken during European trading hours.
Today’s economic indicators include South Africa’s money supply, Sweden’s real GDP, and Sweden’s retail sales at 15:00; the UK’s consumer credit balance and money supply at 17:30; and the UK’sCBI Retail Sales at 19:00, Brazil’s Nominal Fiscal Balance at 20:30, the U.S. Dallas Fed Manufacturing Index at 23:30, and a U.S. 6-month Treasury bill auction at 24:30. We’ll be watching the end-of-month price action closely to see if the weak Canadian dollar will rebound during U.S. trading hours.
Author: Keisuke Sakurai
