Will the falling Canadian dollar recover? All eyes are on its direction.
06.06.2024
- ECB Policy Rate and Statement Release
- Swiss Employment Statistics
In yesterday’s U.S. session, 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 dropped from 114.238 to 113.605, briefly dipping below the 20-period moving average on the hourly chart.During today’s Asian session, the pair has held steady in the upper 113-yen range, but as 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 the U.S. session.
European currencies saw the pound rise against the yen after yesterday’s UK services PMI came in unchanged from the previous month’s reading of 52.9. GBP/JPY climbed from 197.536 to 199.744, reaching a level just below the 200-period simple moving average (SMA) on the hourly chart. Since the pair has broken above the 20-period moving average (MA) on the 4-hour chart and is rebounding off the 20-period MA as a support line on the daily chart, we will be watching for further upside potential during European trading hours.
Today’s schedule includes Japan’s foreign and domestic securities investment data 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, at 18:00 Eurozone retail sales,U.S. Challenger Layoffs at 8:30 PM, the ECB policy rate and statement at 9:15 PM, U.S. Initial Jobless Claims, U.S. Trade Balance, and Canada’s International Merchandise Trade at 9:30 PM, remarks by ECB President Lagarde at 9:45 PM, and Canada’s Ivey PMI at 11:00 PM.We will be watching closely to see if the falling Canadian dollar recovers.
Author: Keisuke Sakurai
