With Canadian housing starts showing strong growth, all eyes are on the direction of the Canadian dollar

With Canadian housing starts showing strong growth, all eyes are on the direction of the Canadian dollar

17.10.2024

In yesterday’s U.S. currency markets, the Canadian dollar emerged as the strongest currency during U.S. trading hours following the release of September housing starts data, which showed an increase from 217,000 units the previous month to 223,000 units. The CAD/JPY pair rose from 108.014 to 108.908. A band walk along the +2σ line of the hourly Bollinger Bands was observed.On the 4-hour chart, the RSI rose to 60. On the daily chart, the price is trading just below the 75-day moving average.

Among European currencies, the euro rose slightly against the yen ahead of today’s ECB policy rate announcement. The euro/yen pair rose from 162.112 to 162.879, moving above the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is trading below the 20-period MA, and the RSI is trending gently downward. On the daily chart, the MAs are clustered closely together, making it difficult to discern a clear direction; therefore, traders should pay close attention to any volatility triggered by today’s ECB announcement.

Today’s schedule includes Japan’s trade balance (customs-based) at 8:50, Australia’s employment report at 9:30, Japan’s tertiary industry activity index at 13:30, the Eurozone’s trade balance and consumer price index at 18:00, the Turkish Central Bank’s (TCMB) policy rate decision and statement at 20:00, the ECB’s policy rate decision and statement at 21:15,at 9:30 PM, Canada’s International Securities Turnover, U.S. Retail Sales, the U.S. Philadelphia Fed Business Outlook Index, and U.S. Initial Jobless Claims; at 9:45 PM, remarks by ECB President Lagarde; at 10:15 PM, U.S. Industrial Production; at 11:00 PM, U.S. Business Inventories; and at midnight, U.S. Weekly Crude Oil Inventories.We will be watching the direction of the Canadian dollar, which rose on the back of strong Canadian housing starts data.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed