Will the weakening pound recover? All eyes are on price movements during European trading hours.
09.09.2024
- China Consumer Price Index
- Mexico Consumer Price Index
Last weekend, the Canadian dollar fell against the yen following the release of Canada’s August employment statistics on the 6th, which showed the unemployment rate worsening by 0.2 percentage points from 6.4% the previous month to 6.6%. The CAD/JPY pair dropped from 106.746 to 104.677. The hourly RSI fell to 28.On the daily chart, there have been four consecutive bearish candles, and on the weekly chart, the price has pulled back after touching the 75-day moving average. Therefore, we should watch for continued weakness in the Canadian dollar.
Among European currencies, the pound was the weakest. The GBP/JPY pair fell from 189.507 to 186.423. The price dropped from the +2σ to the -2σ levels on the hourly Bollinger Bands. During Asian trading hours at the start of the week, the pair rebounded slightly, recovering to around 187.788. We will closely monitor the situation to see if the pound will weaken again during European trading hours.
Today’s economic indicators include Japan’s balance of payments and second-quarter real GDP at 8:50 a.m., China’s producer price index and consumer price index at 10:30 a.m., Taiwan’s trade balance at 5:00 p.m.,at 9:00 PM, Mexico’s Consumer Price Index; at 11:00 PM, U.S. Wholesale Inventories; at 4:00 AM, U.S. Consumer Credit; and at 7:45 AM the following day, New Zealand’s Q2 Manufacturing Sales. We will be watching price movements during European trading hours to see if the weakening pound can recover.
Author: Keisuke Sakurai
