Caution over the direction of the Canadian dollar as the unemployment rate worsened from 5.2% to 5.4%

Caution over the direction of the Canadian dollar as the unemployment rate worsened from 5.2% to 5.4%

10.07.2023

Last weekend, the Canadian dollar fell against the yen following the release of Canada’s June employment report on the 7th. Although the number of employed persons rose from the market forecast of 19,000 to 60,000, the unemployment rate worsened from the expected 5.3% to 5.4%. The CAD/JPY pair fell by just over 90 pips, from 107.835 to 106.878.The pair fell without finding support at the 20-day moving average on the daily chart. With the Bank of Canada’s policy rate announcement coming up the day after tomorrow, we should remain cautious regarding the possibility of a continued decline in the Canadian dollar.

Despite the fact that German industrial production, released last weekend, fell to 0.7% year-on-year from 1.6% the previous month, the euro rose against the U.S. dollar. The EUR/USD pair rose by approximately 100 pips from 1.0867 to 1.0973, gaining momentum as it approached last month’s high of 1.1010.From a technical perspective, the EUR/USD pair is trending upward toward the 1.1160 level, which marks the upper boundary of a daily rising wedge pattern, so we will be watching price movements closely during European trading hours.

Today’s schedule includes: Turkey’s employment statistics at 4:00 PM, the Eurozone investor sentiment index at 5:30 PM, Canadian housing starts at 9:30 PM, Israel’s policy rate at 10:00 PM, U.S. wholesale inventories and remarks by Fed Vice Chair Bar at 11:00 PM, remarks by Bank of England Governor Bailey at midnight, and U.S. Daily:Remarks by the President of the San Francisco Fed, Remarks by Mester, President of the Cleveland Fed, at 1:00 AM: Remarks by Nagel, President of the German Bundesbank, Remarks by Bostic, President of the Atlanta Fed, and at 4:00 AM: U.S. consumer credit balances are scheduled. We should remain cautious regarding the direction of the Canadian dollar, as the unemployment rate has worsened from 5.2% to 5.4%.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran