With Canadian housing starts showing strong growth, all eyes are on the direction of the Canadian dollar
17.10.2024
- Europe: Trade Balance
- Turkey: TCMB Central Bank Policy Rate and Statement Release
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 to 223,000 units from 217,000 the previous month. 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, trading 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 moving averages 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, and 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.
Author: Keisuke Sakurai
