Investors should watch for further downside potential in the Canadian dollar, which is falling against the yen

Investors should watch for further downside potential in the Canadian dollar, which is falling against the yen

01.09.2023

Yesterday, the three major U.S. stock indices saw mixed performance, resulting in a market characterized by flat stock prices, falling interest rates, and rising crude oil prices. WTI crude oil surged to $83.50. Natural gas, on the other hand, faced resistance at higher levels and traded in the $2.75 range. All five major precious metals declined, with silver falling the most, dropping back to $24.40.

In the foreign exchange market, the Canadian dollar fell against the yen after Canada’s second-quarter current account balance, released yesterday, worsened to a deficit of CAD 6.63 billion from the previous reading of CAD 6.17 billion. The CAD/JPY pair fell from 108.115 to 107.301, dropping below the 200-period simple moving average (SMA) on the hourly chart.On the daily chart, the CAD/JPY pair remains above the 20-day moving average, but the RSI is showing a bearish divergence around the 53 level. Therefore, we should remain cautious of a potential decline during U.S. trading hours.

Today’s economic indicators include the UK Nationwide House Price Index at 3:00 PM, the Swiss Consumer Price Index at 3:30 PM, the French Budget Balance at 3:45 PM, the Turkish Manufacturing PMI at 4:00 PM, the Swiss SVME Purchasing Managers’ Index at 4:30 PM, the French Manufacturing PMI at 4:50 PM, the German Manufacturing PMI at 4:55 PM,at 5:00 PM, the Eurozone Manufacturing PMI; at 5:30 PM, the UK Manufacturing PMI; at 7:00 PM, remarks by UK MPC member Pill and US Federal Reserve Bank of Atlanta President Bostic; at 9:30 PM, Canadian Real GDP and US Employment Report; at 10:45 PM, the US Manufacturing PMI; and at 11:00 PM, the US ISM Manufacturing Index are scheduled for release.We should pay close attention to the downside potential of the Canadian dollar, which is currently falling against the yen.

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