Investors should watch for further downside potential in the Canadian dollar, which has weakened in U.S. trading hours
08.10.2024
- Japan's Monthly Labor Survey
- UK BRC Same-Store Sales
In yesterday’s U.S. currency trading, the Canadian dollar weakened, following the trend of Oceania currencies. The CAD/JPY pair fell from 109.810 to 108.561, tracing a gradual decline along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has shifted from above the 10-period moving average to below it, and on the daily chart, it is facing resistance at the 200-period exponential moving average. We need to assess whether the Canadian dollar will continue to weaken against the yen during U.S. trading hours.
Among European currencies, the pound was the weakest. The GBP/JPY pair fell from 195.620 to 193.142, breaking below the 75-period moving average on the hourly chart. On the 4-hour chart, the pair is showing a downward trend after pulling back from the +2σ line of the Bollinger Bands. Although it remains above the 200-period simple moving average on the daily chart, the RSI is showing divergence. We will be watching for any directional movement to see if the pound continues to weaken during European trading hours.
Today’s schedule includes UK BRC same-store sales at 8:01, Australia’s Westpac Consumer Confidence Index at 8:30, Japan’s Monthly Labor Survey at 8:30, Japan’s Balance of Payments at 8:50, Australia’s NAB Business Conditions Index at 9:30, Germany’s Industrial Production at 15:00, France’strade balance and current account balance, at 17:00 Taiwan’s Consumer Price Index, at 21:30 Canada’s International Merchandise Trade and U.S. trade balance, at 25:45 remarks by Bostic, President of the Atlanta Fed, at 26:00 remarks by Nagel, President of the German Bundesbank, and a U.S. 3-year Treasury auction. We should pay close attention to the downside potential of the Canadian dollar, which has weakened in U.S. trading hours.
Author: Keisuke Sakurai
