Should investors be wary of further downside potential for the CAD/JPY pair following the BOC’s 0.25% rate cut?
05.09.2024
- Swiss Employment Statistics
- U.S. Challenger Layoff Figures
In the U.S. currency market yesterday, the Canadian dollar fell against the yen following the Bank of Canada’s (BOC) policy rate announcement, in which the central bank cut rates by 0.25% to 4.25%, as expected by the market. The CAD/JPY pair fell by approximately 150 pips from 107.523 to 106.002.The downtrend along the 10-period moving average (MA) on the hourly chart continued. On the daily chart, the price has fallen from the +2σ to the -2σ levels of the Bollinger Bands, so we should remain cautious of a continued decline.
European currencies rose as the euro gained against the U.S. dollar following yesterday’s release of the Eurozone’s July Producer Price Index (PPI), which improved year-over-year from -3.2% in the previous month to -2.1%.The EUR/USD pair rose from 1.1034 to 1.1095. A rebound along the 20-period moving average (MA) on the hourly chart was confirmed. On the daily chart, the 20-period MA support line serves as a key level determining whether the rebound will continue, so we will be watching price movements during European trading hours.
Today’s schedule includes South Korea’s real GDP at 8:00, Japan’s Monthly Labor Survey at 8:30, Japan’s foreign and domestic securities investment at 8:50, the Philippines’ Consumer Price Index at 10:00, Australia’strade balance, 12:30 Thailand CPI, 14:00 Singapore retail sales, 14:45 Switzerland employment statistics, 15:00 Germany manufacturing orders, 18:00 Eurozone retail sales,U.S. Challenger Layoffs at 8:30 PM, U.S. ADP Employment Report at 9:15 PM, Canada Labor Productivity at 9:30 PM, U.S. Initial Jobless Claims at 9:30 PM, U.S. PMI at 10:45 PM, and U.S. ISM Non-Manufacturing Index at 11:00 PM.We should remain highly vigilant regarding the downside potential for the CAD/JPY pair, which fell following the BOC’s 0.25% rate cut.
Author: Keisuke Sakurai
