All eyes are on whether the Canadian dollar—now the weakest currency—will recover
31.01.2025
- U.S. PCE Deflator
- Canada · GDP
In the U.S. currency market the previous day, the Canadian dollar was the weakest currency during U.S. trading hours. The CAD/JPY pair traded between 107.776 and 105.746. The price movement deviated significantly from the -3σ level of the hourly Bollinger Bands.On the 4-hour chart, the RSI has plummeted to 30, and on the daily chart, the pair has significantly broken below this month’s low. It is on track to approach 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 moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the pair is stalling as the 200-period SMA acts as resistance, while on the daily chart, it is retesting the level after breaking above the 20-period MA. We will be watching for signs of a potential 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,at 16:45: France’s Consumer Price Index and Producer Price Index; at 17:55: Germany’sunemployment rate at 16:30, German CPI and PPI at 22:00, Canadian GDP, U.S. personal income, U.S. PCE deflator, and 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
