Should we be wary of further downside potential for the Canadian dollar amid worsening unemployment figures?

Should we be wary of further downside potential for the Canadian dollar amid worsening unemployment figures?

06.11.2023

Last weekend, the Canadian dollar fell against the yen following the release of Canada’s October employment statistics on the 3rd, which showed the unemployment rate worsening by 0.2 percentage points from the previous month’s 5.5% to 5.7%. The CAD/JPY pair fell from 109.524 to 109.004.The price fell to the 75-period moving average on the hourly chart. However, during today’s Asian session, the Canadian dollar has been strengthening against the yen, breaking above last weekend’s high to rise to 109.649, so we should remain cautious regarding price movements during the U.S. session.

Despite the eurozone unemployment rate worsening from 6.4% to 6.5% in last weekend’s September employment statistics, the euro rose against the yen. The EUR/JPY pair climbed from 159.592 to 160.403.It has continued to hit new highs during today’s Asian trading session, rising to 160.636. We will need to keep an eye on currency strength during European trading hours to see if the euro’s momentum continues.

Today, at 4:00 PM, German Manufacturing New Orders; at 5:00 PM, Czech Industrial Production; at 5:50 PM, French Services PMI; at 5:55 PM, German Services PMI; at 6:00 PM, Eurozone Services PMI; at 6:30 PM, Eurozone Investor Sentiment Index and UK Services PMI;at 9:00 PM, Mexico’s Consumer Confidence Index; at 12:00 AM, Canada’s Ivey Purchasing Managers’ Index; at 1:00 AM, remarks by U.S. Federal Reserve Governor Cook; and at 1:30 AM, a U.S. 6-month Treasury bill auction. We must remain highly vigilant regarding the downside potential for the Canadian dollar, as the unemployment rate has worsened from 5.5% to 5.7%.

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