Keep an eye on the direction of the CAD/JPY pair following the BOC’s decision to keep its policy rate unchanged

Keep an eye on the direction of the CAD/JPY pair following the BOC’s decision to keep its policy rate unchanged

07.03.2024

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen following the Bank of Canada’s (BOC) policy rate announcement, in which the policy rate was held steady at 5.00%—in line with market expectations.The CAD/JPY pair rose from 109.935 to 110.620, temporarily recovering to the 75-period moving average (MA) on the hourly chart. However, during today’s Asian trading session, cross-yen pairs fell across the board, causing the CAD/JPY pair to drop to 109.879.

European currencies rose as the euro strengthened against the U.S. dollar following yesterday’s release of January retail sales data, which showed a shift from a 1.1% month-over-month decline to a 0.1% increase.The EUR/USD pair rose from 1.0842 to 1.0915. An uptrend originating from the 20-period moving average (MA) on the 4-hour chart was observed. Since the daily chart also shows an uptrend originating from the 20-period MA, we should keep a close eye on price movements during European trading hours.

Today’s schedule includes Japan’s domestic and foreign securities investment at 8:50, Australia’s trade balance at 9:30, Switzerland’s employment statistics at 15:45, Germany’s new manufacturing orders at 16:00, Taiwan’s consumer price index at 17:00, South Africa’s current account balance at 18:00,at 9:00 PM: Mexico’s Consumer Price Index; at 9:30 PM: U.S. Challenger Layoff Announcements; at 10:15 PM: Eurozone ECB Policy Rate and Statement; at 10:30 PM: U.S. Initial Jobless Claims; at 10:30 PM: Canada’s Building Permits;10:30 PM: U.S. Trade Balance and Canada’s International Merchandise Trade, and 12:00 AM: Remarks by Fed Chair Powell. We intend to carefully assess the direction of the CAD/JPY pair, which rose following the BOC’s decision to keep interest rates unchanged.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed