- In the Forex market, the US Dollar and Japanese Yen currently look weak, while the commodity currencies (AUD, NZD, and especially CAD) are strong. The Canadian Dollar stands out as the USD/CAD currency pair is reaching a 9-month low with firm bearish momentum. Trend traders will be looking at this (while keeping mind that there will be a release of Canadian CPI data later today) but also at the USD/JPY currency pair which has been consolidating since the week opened but remains near its 7-month high within a strong bullish trend. Rumours are spreading that the Bank of Japan will intervene to prop up the Yen when the price reaches ¥145.
- Global stock markets mostly moved lower yesterday led by falling tech stocks, as traders increasingly unwind former bets that the US Federal Reserve would begin to cut rates later in 2023. Short-term yields have now risen to the 4.70% area, showing what the market thinks that prospect is unlikely.
- Bitcoin sees the key resistance level at $30,534 continuing to hold.
- There will be a release today of Canadian CPI (inflation) data, which is expected to show a month-on-month increase of only 0.4% compared to last month’s increase of 0.7%.
- There will be a release today of Australian CPI (inflation) data, which is expected to decline from its current annualized rate of 6.8%.
- There will be a release today of US CB Consumer Confidence data.
Forex Today: Canadian Dollar Hitting 9-Month High as CPI Data Awaits
Adam Lemon
Commodity currencies are advancing strongly today, especially the Canadian Dollar, as we see the USD/CAD currency pair trading now at a fresh 9-month low price.