Will the BOC’s policy rate announcement signal a shift in direction, or will the Canadian dollar remain on hold?
11.12.2024
- U.S. MBA Mortgage Applications Index
- U.S. Consumer Price Index
In yesterday's U.S. currency trading, the Canadian dollar rose against the yen ahead of today's Bank of Canada policy rate announcement. The CAD/JPY pair rose from 106.446 to 107.438. On the hourly chart, the price moved from the -2σ to the +2σ Bollinger Bands. On the 4-hour chart, the price has recovered to last week's high, and on the daily chart, it is currently attempting to break above the 10-day moving average resistance line.
European currencies fell against the U.S. dollar after the final reading of Germany’s November consumer price index, released yesterday, showed no change from the previous month’s 2.2% year-over-year rate. The euro fell against the dollar from 1.0568 to 1.0498. The decline came as the pair encountered resistance at the 20-day moving average on the daily chart. On the weekly chart, the RSI had rebounded from the 30 level but is now trending downward again.
Today’s schedule includes South Korea’s employment statistics at 8:00, Japan’s Business Survey Index (BSI) and domestic corporate goods prices at 8:50, remarks by RBA Deputy Governor Hauser at 16:00, South Africa’s Consumer Price Index at 17:00, South Africa’s retail sales at 20:00,at 8:30 PM, India’s money supply; at 9:00 PM, the U.S. MBA Mortgage Applications Index; at 10:30 PM, the U.S. Consumer Price Index; at 11:45 PM, the Bank of Canada’s policy rate decision and statement; at 12:30 AM, remarks by Bank of Canada Governor Macklem; and U.S. weekly crude oil inventories. I’ll be watching the Canadian dollar closely to see if the Bank of Canada’s policy rate announcement brings any change in market direction.
Author: Keisuke Sakurai
