Weekly data: Canadian and Japanese inflation in view

<img width="562" height="338" src="https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" style="float: left; margin-right: 5px;" link_thumbnail="" loading="lazy" srcset="https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness.jpg 880w, https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness-768×463.jpg 768w, https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness-730×438.jpg 730w, https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness-230×138.jpg 230w, https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness-380×228.jpg 380w, https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness-88×53.jpg 88w, https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness-245×148.jpg 245w, https://www.leaprate.com/wp-content/uploads/2021/11/weekly-data-exness-500×301.jpg 500w" sizes="(max-width: 562px) 100vw, 562px" /><p>However, the rand has remained strong in the last few weeks as the South African Reserve Bank also appears to be in a cycle of tightening. On the whole, the outlook for South Africa’s economy seems to be stronger now than it was at the start of 2022: prices of important commodities, key to South Africa’s exports, have risen further with the war in Ukraine amplifying Covid’s effects on supply chains. The main risk is local inflation, particularly of food and fuel.</p>
<p>On the chart, it seems unlikely that the recent downtrend might continue immediately. ATR has reached a 2022 low of less than 15 rand cents and momentum has declined since late March. Volume has also been much lower since the end of <a target="_blank" href="https://www.leaprate.com/forex/market-news/midweek-data-more-highs-for-inflation-ahead-of-the-ecb/" rel="noopener">last week.</a> This week’s data, notably South African inflation, are unlikely to have an ongoing effect on the price but might drive a bounce to the area of the 50 SMA or a relatively small loss to the latest low around R14.40.</p>
<h3>Key data this week</h3>
<p><strong>Bold </strong>indicates the most important releases for this symbol.</p>
<p><u>Tuesday 19 April<br />
</u></p>
<ul>
<li>12:30 GMT: American annual housing starts (March) – consensus 1.75 million, previous 1.77 million</li>
<li>12:30 GMT: American annual building permits (March) – consensus 1.83 million, previous 1.87 million</li>
</ul>
<p><u>Wednesday 20 April<br />
</u></p>
<ul>
<li><strong>8:00 GMT: South African annual inflation (March) – consensus 5.8%, previous 5.7%</strong></li>
<li><strong>8:00 GMT: South African annual core inflation (March) – consensus 3.7%, previous 3.5%</strong></li>
<li>8:00 GMT: South African monthly inflation (March) – consensus 0.8%, previous 0.6%</li>
</ul>
<p><u>Thursday 21 April<br />
</u></p>
<ul>
<li>11:00 GMT: South African annual building permits (February) – consensus 18%, previous 44.5%</li>
<li>12:30 GMT: initial jobless claims (16 April) – consensus 175,000, previous 185,000</li>
</ul>
<h2>Canadian dollar-yen, daily</h2>
<p><img class="alignnone size-full wp-image-444721" src="https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily.jpg" alt="" width="1463" height="768" srcset="https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily.jpg 1463w, https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily-250×131.jpg 250w, https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily-700×367.jpg 700w, https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily-768×403.jpg 768w, https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily-120×63.jpg 120w, https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily-245×129.jpg 245w, https://www.leaprate.com/wp-content/uploads/2022/04/Canadian-dollar-yen-daily-500×262.jpg 500w" sizes="(max-width: 1463px) 100vw, 1463px" /></p>
<p>As for the greenback and various other major currencies, the Canadian dollar has made strong gains against the yen since last month as the divergence of monetary policy becomes increasingly clear. Last week’s hike of the target overnight rate in Canada was the first half percent hike in more than 20 years, demonstrating the Bank of Canada’s commitment to tackling inflation. With oil remaining above $100 quite consistently in April so far, the loonie has also had support from the prices of exports. Meanwhile the yen has reached a low of around seven years in this pair as the Bank of Japan remains committed to ultra-easy policy amid stubbornly low inflation: excluding food and energy, annual deflation in Japan is around 1%.</p>
<p>¥100 exactly is a critical psychological area which the price has yet to clear fully. Entering here as a new buyer would traditionally be regarded as unacceptably risky, so some traders might prefer to wait for a retracement, possibly to the 261.8% weekly Fibonacci extension around ¥97.25, before buying in. A declining ATR and very strong overbought conditions might support this approach. Beyond ¥100, there is no clear resistance until November 2014’s closing highs around ¥105.</p>
<p>CADJPY is the major forex pair with the most important economic releases this week. Traders can reasonably expect significantly higher volatility over the next few days.</p>
<h3>Key data this week</h3>
<p><strong>Bold </strong>indicates the most important releases for this symbol.</p>
<p><u>Tuesday 19 April<br />
</u></p>
<ul>
<li><strong>23:50 GMT: Japanese balance of trade (March) – consensus negative ¥100.8 billion, previous negative ¥668.3 billion</strong></li>
</ul>
<p><u>Wednesday 20 April<br />
</u></p>
<ul>
<li><strong>12:30 GMT: Canadian annual inflation (March) – consensus 6.1%, previous 5.7%</strong></li>
<li><strong>12:30 GMT: Canadian annual core inflation (March) – consensus 5%, previous 4.8%</strong></li>
<li>12:30 GMT: Canadian monthly inflation (March) – consensus 0.9%, previous 1%</li>
</ul>
<p><u>Thursday 21 April<br />
</u></p>
<ul>
<li><strong>23:30 GMT: Japanese annual inflation (March) – consensus 1.1%, previous 0.9%</strong></li>
<li><strong>23:30 GMT: Japanese annual core inflation (March) – consensus 0.8%, previous 0.6%</strong></li>
<li>23:30 GMT: Japanese monthly inflation (March) – consensus 0.6%, previous 0.4%</li>
</ul>
<p><u>Friday 22 April<br />
</u></p>
<ul>
<li>12:30 GMT: Canadian monthly retail sales (February) – consensus 0.2%, previous 3.2%</li>
</ul>
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<p><em>Disclaimer: opinions are personal to the author and do not reflect the opinions of Exness or LeapRate.</em></p>
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<p>The post <a rel="nofollow" href="https://www.leaprate.com/forex/market-news/weekly-data-canadian-and-japanese-inflation-in-view/">Weekly data: Canadian and Japanese inflation in view</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>