Will attention focus on the Canadian dollar’s ability to recover after becoming the weakest currency?

Will attention focus on the Canadian dollar’s ability to recover after becoming the weakest currency?

12.07.2024

In U.S. trading hours yesterday, the Canadian dollar was the weakest currency. The CAD/JPY pair fell by approximately 3 yen, from 118.766 to 115.711. It broke well below the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, the pair has fallen to just below the 200-period SMA, and on the daily chart, it has broken below the 20-period MA. On the weekly chart, the pair has fallen from the +2σ line of the Bollinger Bands to near the centerline, so we should pay close attention to the price action of the CAD/JPY pair during U.S. trading hours.

Among European currencies, the pound fell against the yen. The GBP/JPY pair plummeted from 208.099 to 203.861, a drop of 4.2 yen. On the hourly chart, the pair has broken well below the 200-period SMA, and while it rebounded after touching the 75-period MA on the 4-hour chart, downward price action has continued during today’s Asian session, so traders should exercise extreme caution when considering counter-trend trades.

Today’s economic indicators include Japan’s Industrial Production at 1:30 PM, Germany’s Wholesale Price Index and Sweden’s Consumer Price Index at 3:00 PM, France’s Consumer Price Index at 3:45 PM, Turkey’s Current Account Balance at 4:00 PM, India’s Consumer Price Index and Mexico’s Industrial Production at 9:00 PM, and Canada’s Building Permits at 9:30 PM.U.S. Producer Price Index, at 10:00 PM: Canada’s Existing Home Sales, and at 11:00 PM: the U.S. University of Michigan Consumer Sentiment Index. We will be closely monitoring the recovery potential of the Canadian dollar, which has become the weakest currency.

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