Forex traders will get a minor economic distraction from the election circus in Canada today with the release of housing starts and building permits. Economists expected a further slowdown in the housing market, as seasonality is starting to filter through the data. In the meantime, Canadian voters will sort through last night’s TV debate in order to assess how PM Trudeau performed following his “brownface scandal”. How will this influence the CADJPY? Today’s fundamental analysis will take a look at price action in bot directions.

Economic data out of Japan released this morning pointed towards an more hardship for the consumer. Labor cash earnings continued to contract, but household spending expanded. How long will the Japanese consumer keep up this pace? The ECO Watchers Survey confirmed a worsening outlook for the slowing Japanese economy, but the trade balance for August came in better than expected. Where is the CADJPY headed next? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.