Will the falling Canadian dollar recover? All eyes are on its direction.
06.06.2024
- Europe: ECB Policy Rate and Statement Release
- Swiss Employment Statistics
In U.S. currency trading the previous day, the Canadian dollar fell against the yen immediately after the policy rate was cut by 0.25% to 4.75%, as expected by the market. The CAD/JPY pair fell from 114.238 to 113.605, temporarily dipping below the 20-period moving average on the hourly chart.During today’s Asian trading session, the pair has held steady in the upper 113-yen range, but since it is positioned just below the 200-period simple moving average (SMA) on the 4-hour chart, we will be watching closely to see if it declines during U.S. trading hours.
European currencies saw the pound rise against the yen after the UK services PMI released yesterday remained unchanged from the previous month’s reading of 52.9.GBP/JPY rose from 197.536 to 199.744, climbing to just below the 200-period SMA on the hourly chart. On the 4-hour chart, the pair has broken above the 20-period MA, and on the daily chart, it has rebounded off the 20-period MA as a support level; therefore, we will be watching for further upside potential during European trading hours.
Today, Japan’s foreign and domestic securities investment figures will be released at 8:50, the Philippines’ unemployment rate at 10:00, Australia’strade balance, at 14:45 Swiss employment statistics, at 15:00 German new manufacturing orders, at 17:00 Taiwan’s consumer price index, at 17:30 UK construction PMI, at 18:00 South Africa’s current account balance,6:00 PM: Eurozone Retail Sales; 8:30 PM: U.S. Challenger Layoffs; 9:15 PM: Eurozone ECB Policy Rate and Statement; 9:30 PM: U.S. Initial Jobless Claims, U.S. Trade Balance,Canada’s International Merchandise Trade, 21:45: Remarks by ECB President Lagarde, and 23:00: Canada’s Ivey PMI. We will be closely watching for signs of a potential recovery in the falling Canadian dollar.
Author: Keisuke Sakurai
