Should We Be Wary of Further Downside Potential for the Canadian Dollar, Which Weakened During 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, while 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 pound/yen pair fell from 195.620 to 193.142.It broke below the 75-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is showing a corrective trend from the +2σ level of the Bollinger Bands, and while it remains above the 200-period simple moving average (SMA) 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 the UK BRC Same-Store Sales at 8:01, the Australian Westpac Consumer Confidence Index at 8:30, Japan’s Monthly Labor Survey at 8:30, Japan’s Balance of Payments at 8:50, the Australian NAB Business Confidence Index at 9:30, Germany’sIndustrial Production, at 15:45: France’s Trade Balance and Current Account, at 17:00: Taiwan’s Consumer Price Index, at 21:30: Canada’s International Commodity Trade and U.S. Trade Balance,at 25:45: U.S. 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 for the Canadian dollar, which has weakened during U.S. trading hours.
Author: Keisuke Sakurai
