Keep an eye on the direction of the CAD/JPY pair, which fell on the back of a decline in Canada’s CPI
18.12.2024
- U.S. FOMC Policy Rate and Statement Release
- European Consumer Price Index
In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s November Consumer Price Index, released yesterday, showed a year-over-year decline from 2.0% in the previous month to 1.9%. The CAD/JPY pair fell from 108.410 to 107.051, breaking below the support line of the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, the 200-period EMA is acting as a resistance level, causing the price to pull back, while on the daily chart, the price has begun to decline after touching the 20-period MA.
Among European currencies, the pound rose against the U.S. dollar. The GBP/USD pair climbed from 1.2665 to 1.2728. The upward trend along the 20-period moving average (MA) on the hourly chart continued. On the 4-hour chart, the pair has broken above the 20-period MA, which had been acting as a resistance line, and on the daily chart, it has rebounded firmly before reaching last month’s low. We will be watching price movements during U.S. trading hours to see if the pound’s rebound continues.
Today’s schedule includes the UK Consumer Price Index, UK Producer Price Index, and UK Retail Sales at 4:00 PM; remarks by German Bundesbank President Nagel at 6:30 PM; the Eurozone Consumer Price Index at 7:00 PM; and the UKCBI Business Survey, at 9:00 PM the US MBA Mortgage Applications Index, at 10:30 PM US Housing Starts, at 12:30 AM US Weekly Crude Oil Inventories, at 4:00 AM the US FOMC interest rate decision and statement, and at 4:30 AM remarks by US Federal Reserve Chair Powell. I intend to carefully monitor the direction of the CAD/JPY pair, which fell following the decline in the Canadian CPI.
Author: Keisuke Sakurai
