Investors should keep an eye on the Canadian dollar’s movements ahead of the BOC policy rate announcement

Investors should keep an eye on the Canadian dollar’s movements ahead of the BOC policy rate announcement

06.09.2023

In yesterday’s U.S. currency trading, the Canadian dollar strengthened alongside the U.S. dollar ahead of today’s BOC policy rate announcement. With the Japanese yen being the weakest among the Oceania currencies, the CAD/JPY pair rose from 107.449 to 108.537.It has returned to the high levels seen two months ago. From a technical perspective, the CAD/JPY pair is in an uptrend, supported by the weekly 10-day moving average (MA), and is moving higher toward the high of 110.310 set last year. We will need to carefully assess whether the Canadian dollar will continue to strengthen against the yen.

Among European currencies, the pound also rose against the yen. Despite reports released during today’s Asian trading session that Birmingham, the UK’s second-largest city, had effectively gone bankrupt, the GBP/JPY pair has managed to avoid a significant decline. Yesterday, the GBP/JPY rose by approximately 1.5 yen, from 184.070 to 185.775.The price moved from the daily 20-day moving average toward the +2σ line of the Bollinger Bands. With key officials’ remarks scheduled for today’s U.S. trading session, traders should remain vigilant regarding the pound’s price movements.

Today’s schedule includes German manufacturing new orders at 3:00 PM, UK construction PMI at 5:30 PM, Eurozone retail sales at 6:00 PM, US MBA mortgage applications index at 8:00 PM, and at 9:30 PM, Canadian international merchandise trade, Canadian Q2 labor productivity, and US trade balance.at 10:15 PM UK BOE Governor Bailey’s remarks, at 10:45 PM US PMI Purchasing Managers’ Index, at 11:00 PM Canada BOC policy rate and statement release, US ISM Non-Manufacturing Index, and at 3:00 AM US Beige Book. I intend to closely monitor the movement of the Canadian dollar ahead of the BOC policy rate announcement.

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