Should we keep an eye on the Canadian dollar’s upside potential following the rise in housing starts?
19.11.2024
- Number of Building Permits Issued in the U.S.
- Schmidt (U.S.): Remarks by the President of the Kansas City Federal Reserve Bank
In yesterday's U.S. currency trading, the Canadian dollar rebounded against the yen after Canada's October housing starts, released yesterday, rose to 240,000 from 223,000 the previous month. The CAD/JPY pair rose from 109.252 to 110.462.It has recovered above the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 200-period simple moving average (SMA) is acting as support, but since the pair has fallen again during today’s Asian session, we should pay close attention to the direction of the market during U.S. trading hours.
Among European currencies, the euro rose against the yen. The EUR/JPY pair climbed from 162.258 to 163.978. It has moved from below the 20-period moving average (MA) on the hourly chart to above it. On the 4-hour chart, the pair has retraced from the -3σ Bollinger Band to the centerline, and on the daily chart, it is attempting to break above its recent high just below the 75-period MA. We will be watching price movements during U.S. trading hours to see if the euro can maintain its upward momentum against the yen.
Today's economic indicators include the release of the RBA minutes at 9:30 a.m., the Swiss trade balance at 4:00 p.m., and the EurozoneCPI, UK: Remarks by BOE Governor Bailey, UK: Remarks by BOE Deputy Governor Lombardelli, UK: Remarks by MPC Member Mann, UK: Remarks by MPC Member Taylor, 10:30 PM: Canada CPI, US Housing Starts, US Building Permits, and 3:10 AM: Remarks by US Federal Reserve Bank of Kansas City President Schmidt.We will be watching for further upside potential in the Canadian dollar, which rose on the back of an increase in Canadian housing starts.
Author: Keisuke Sakurai
