Should we keep a close eye on the upside potential of the Canadian dollar, which has become the strongest currency in the wake of the U.S. dollar’s rise?

Should we keep a close eye on the upside potential of the Canadian dollar, which has become the strongest currency in the wake of the U.S. dollar’s rise?

11.12.2023

Last weekend, despite the release of Canada’s third-quarter capacity utilization rate on the 8th showing a decline from the previous reading of 81.4% to 79.7%, the Canadian dollar emerged as the strongest currency during U.S. trading hours. The CAD/JPY pair rose from 104.883 to 106.861. After expanding to the -3σ level on the 4-hour Bollinger Bands, the pair retreated back toward the 20-period moving average (MA) centerline.As the pair has maintained its upward momentum in early Asian trading today, we will be watching the movement of the CAD/JPY pair as we head into European trading hours.

European currencies saw the euro rise slightly against the yen after the final November consumer price index (CPI) for Germany, released on the 8th, came in at 3.2% year-on-year, matching the previous month’s figure.The euro/yen pair rose from 153.871 to 156.070. The downtrend on the hourly chart has paused, and the pair has broken above the 20-period moving average (MA). We will be closely monitoring price movements leading up to the ECB meeting this Thursday to see if the euro continues to rise against the yen.

Today, during Asian trading hours, Malaysia’s industrial production will be released at 13:00, followed by Sweden’s expected price trends at 14:30; during European trading hours, Norway’s consumer price index and Turkey’s current account balance will be released at 16:00,Turkey’s Industrial Production and Unemployment Rate, at 17:00 the Czech Republic’s Consumer Price Index, at 24:00 US time the US Employment Trends Index, at 25:30 the US 6-month Treasury bill auction, at 27:00 the US 10-year Treasury bond auction, and at 7:20 the following day remarks by the RBA Governor are scheduled.I want to carefully assess the upside potential of the Canadian dollar, which has become the strongest currency by riding the coattails of the US dollar.

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