Will currency strength and weakness become clear? Keep a close eye on price movements during U.S. trading hours.
22.01.2025
- U.S. MBA Mortgage Applications Index
- UK Public Sector Net Debt
In U.S. currency trading the previous day, the Canadian dollar traded sideways against the yen. The CAD/JPY pair fluctuated between 107.325 and 108.762. The hourly RSI remained stagnant between 30 and 60.On the 4-hour chart, price action lacks direction as it fluctuates around the 200-period SMA, while the daily chart shows a return from the -3σ Bollinger Band to the centerline. We will be watching closely to see if the Canadian dollar’s direction becomes clearer during U.S. trading hours.
Among European currencies, the euro traded in a range against the Australian dollar.The EUR/AUD pair traded between 1.6584 and 1.6680. The market lacked clear direction, with the 200-period simple moving average (SMA) on the hourly chart providing support on the downside. On the 4-hour chart, candlesticks are contracting into a triangle pattern, while on the daily chart, the pair is facing resistance at the upper wick of a bullish candle.
Today, at 8:30 a.m., the AustralianWestpac Leading Index at 8:30, Malaysia’s Consumer Price Index at 13:00, the UK’s Public Sector Net Debt and Malaysia’s BNM Overnight Policy Rate at 16:00, South Africa’s Consumer Price Index and Taiwan’s Employment Statistics at 17:00, South Africa’s Retail Sales at 20:00,at 9:00 PM, the U.S. MBA Mortgage Applications Index; at 10:30 PM, Canada’s Industrial Product Prices; at midnight, the U.S. Leading Economic Index; at 12:05 AM, remarks by ECB President Lagarde; and at 3:00 AM, the U.S. 20-year Treasury auction.We will carefully monitor price movements during U.S. trading hours to see if currency strength or weakness becomes clear.
Author: Keisuke Sakurai
