Should we keep an eye on the upside potential of the resilient Canadian dollar?

Should we keep an eye on the upside potential of the resilient Canadian dollar?

08.05.2024

In yesterday’s U.S. currency trading, the Canadian dollar fluctuated against the yen after the Canadian Ivey Purchasing Managers’ Index for April, released yesterday, rose to 63.0 from 57.5 the previous month. The CAD/JPY pair traded between 112.502 and 113.072, with price action straddling the 20-period moving average on the hourly chart.On the 4-hour chart, the 200-period SMA is acting as support, and on the daily chart, the pair has rebounded from the 75-period MA, so we should watch for potential upside in the Canadian dollar during European trading hours.

European currencies rose against the yen as the euro gained ground following yesterday’s release of March retail sales data, which showed a year-over-year improvement from the previous month’s 0.7% decline to a 0.7% increase.The EUR/JPY pair rose from 165.521 to 166.568. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices are rising along the 10-period MA, and on the daily chart, a perfect order has formed from the 200-period simple moving average (SMA) down to the 20-period MA.

Today’s schedule includes the Philippine trade balance at 10:00, German industrial production at 15:00, the Riksbank’s policy rate and statement at 16:30, Taiwan’s trade balance at 17:00, the U.S. MBA mortgage applications index at 20:00, Brazilian retail sales at 21:00, U.S. wholesale inventories at 23:00,at 11:30 PM, U.S. weekly crude oil inventories; at 12:00 AM, remarks by U.S. Federal Reserve Vice Chair Jefferson; at 12:45 AM, remarks by U.S. Boston Fed President Collins; at 2:00 AM, U.S. 10-year Treasury auction; and at 2:30 AM, remarks by U.S. Federal Reserve Governor Cook. I intend to carefully monitor the upside potential of the firm Canadian dollar.

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