Watch for potential upside in the CAD/JPY pair following Canada’s higher-than-expected CPI reading
19.02.2025
- UK Consumer Price Index
- NZ: RBNZ Policy Rate and Statement Release
In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen after Canada’s January Consumer Price Index (CPI), released yesterday, showed a year-over-year increase of 1.9%, up 0.1 percentage points from the previous month’s 1.8%. The CAD/JPY pair traded between 106.595 and 107.223, with price action fluctuating around the 20-period moving average on the hourly chart.On the daily chart, the price is forming a pattern with higher lows, so we should remain cautious about the potential for the Canadian dollar to rise during U.S. trading hours.
In European trading, the euro weakened during U.S. trading hours. In contrast to the rising USD/JPY, the EUR/JPY faced resistance and fell from 159.196 to 158.375. On the 4-hour chart, the RSI continues to decline gradually, while the daily chart shows that the downtrend that began at the end of last year is still ongoing. We will be watching closely to see if the euro rebounds during European trading hours.
Today’s schedule includes Japan’s machinery orders and trade balance (customs-based) at 8:50 a.m., the RBNZ policy rate and statement at 10:00 a.m., China’s new home sales prices at 10:30 a.m., the UK’s Consumer Price Index and retail sales at 4:00 p.m.,UK Producer Price Index, at 17:00 South Africa’s Consumer Price Index, at 18:00 the Eurozone’s Current Account, at 20:00 South Africa’s Retail Sales, at 21:00 the US MBA Mortgage Applications Index, at 22:30 US Housing Starts, and at 28:00 the release of the US FOMC Minutes.Keep an eye on the upside potential for the CAD/JPY pair, which rose on the back of a higher-than-expected Canadian CPI.
Author: Keisuke Sakurai
