Will the falling Canadian dollar recover? Market participants are watching for signs of a trend reversal.

Will the falling Canadian dollar recover? Market participants are watching for signs of a trend reversal.

06.06.2024

In the U.S. session yesterday, the Canadian dollar fell against the yen immediately after the policy rate was cut by 0.25% to 4.75%, in line with market expectations. The CAD/JPY pair dropped from 114.238 to 113.605, temporarily 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 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 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 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 level on the daily chart, we should watch for further upside 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, 2:45 PM Swiss employment statistics, 3:00 PM German new manufacturing orders, 5:00 PM Taiwan consumer price index, 5:30 PM UK construction PMI, 6:00 PM South Africa current account balance, 6:00 PM Eurozone retail sales,U.S. Challenger Layoffs at 8:30 PM, ECB Policy Rate and Statement at 9:15 PM, U.S. Initial Jobless Claims and U.S. Trade Balance, and Canada’s International Merchandise Trade at 9:30 PM, ECB President Lagarde’s remarks 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.

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