All eyes are on whether the Canadian dollar will fall now that the Bank of Canada has kept its policy rate at 5.00%

All eyes are on whether the Canadian dollar will fall now that the Bank of Canada has kept its policy rate at 5.00%

06.12.2023

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen ahead of today’s Bank of Canada (BOC) policy rate announcement. The CAD/JPY pair dropped from 108.842 to 107.991. The decline occurred as the pair encountered resistance at the 20-period moving average (MA) on the 4-hour chart. Since the 20-period MA is also acting as a resistance level on the daily chart, we should remain cautious to see if the pair will fall further following today’s BOC decision, which is expected to keep rates at 5.00%.

Ahead of remarks today by Bank of England Governor Bailey, the pound fell against the yen. The GBP/JPY pair dropped from 186.186 to 185.067, falling just below the 200-period simple moving average (SMA) on the 4-hour chart. On the daily chart, the pair has broken below the 20-period moving average (MA) and is beginning to trend downward toward the 75-period MA; therefore, we should monitor the RSI and MACD indicators closely while assessing the direction of the market.

Today’s schedule includes German manufacturing new orders at 4:00 PM, Taiwan’s Consumer Price Index at 5:00 PM, the UK Construction PMI at 6:30 PM, Eurozone retail sales at 7:00 PM, remarks by Bank of England Governor Bailey at 8:00 PM, the US MBA Mortgage Applications Index at 9:00 PM,Mexico’s Consumer Price Index, at 10:15 PM U.S. time, U.S. ADP Employment Report, at 10:30 PM, Canada’s International Merchandise Trade, Canada’s Labor Productivity, U.S. Nonfarm Productivity, U.S. Trade Balance, at 12:00 AM, Canada’s BOC Policy Rate and Statement, and at 12:30 AM, U.S. Weekly Crude Oil Inventories.We will be closely monitoring today’s BOC meeting to see if the policy rate remains unchanged at 5.00% and whether this causes the Canadian dollar to decline.

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