All eyes are on whether the Canadian dollar, now the weakest currency, will recover
31.01.2025
- U.S. PCE Deflator
- Canada's GDP
In yesterday’s U.S. trading session, the Canadian dollar was the weakest currency. The CAD/JPY pair traded between 107.776 and 105.746. The price moved well outside the -3σ Bollinger Band on the hourly chart. On the 4-hour chart, the RSI plummeted to 30, and on the daily chart, the pair broke well below this month’s low. It is now approaching last month’s low.
Among European currencies, the pound weakened against the U.S. dollar. The GBP/USD pair traded between 1.2476 and 1.2407. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price is stalling as the 200-period simple moving average (SMA) acts as resistance, while on the daily chart, the price is retesting the level after breaking above the 20-period MA. We will be watching for signs of a rebound in the pound during today’s U.S. trading session to gauge the market’s direction.
Today’s economic indicators include: Japan’s housing starts at 14:00, Germany’s retail sales and the UK’s Nationwide house prices at 16:00, Switzerland’s retail sales at 16:30, France’s consumer price index and producer price index at 16:45, and Germany’sunemployment rate at 16:30, German CPI at 16:45, French CPI and PPI at 16:45, German unemployment rate at 17:55, German CPI at 22:00, Canadian GDP at 22:30, U.S. personal income at 22:30, U.S. PCE deflator at 22:30, remarks by Fed Governor Bowman at 22:30, and the U.S. Chicago PMI at 23:45. We will be watching closely to see if the Canadian dollar, which has become the weakest currency, will show signs of recovery.
Author: Keisuke Sakurai
