Should investors be wary of further downside potential for the Canadian dollar, which has weakened in U.S. trading hours?

Should investors be wary of further downside potential for the Canadian dollar, which has weakened in U.S. trading hours?

08.10.2024

In yesterday’s U.S. currency trading, the Canadian dollar weakened, following the trend of Oceania currencies. The CAD/JPY pair fell from 109.810 to 108.561, marking a gradual decline along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has shifted from above the 10-period moving average to below it, while on the daily chart, it is facing resistance at the 200-period exponential moving average. We need to assess whether the Canadian dollar will continue to weaken against the yen during U.S. trading hours.

Among European currencies, the pound was the weakest. The GBP/JPY pair fell from 195.620 to 193.142, breaking below the 75-period moving average on the hourly chart. On the 4-hour chart, the pair is showing a downward trend following a pullback from the +2σ line of the Bollinger Bands. Although it remains above the 200-period simple moving average on the daily chart, the RSI is showing divergence. We will be watching for any further weakness in the pound during European trading hours to gauge the market’s direction.

Today’s schedule includes UK BRC same-store sales at 8:01, Australia’s Westpac Consumer Confidence Index at 8:30, Japan’s Monthly Labor Survey at 8:30, Japan’s Balance of Payments at 8:50, Australia’s NAB Business Conditions Index at 9:30, Germany’s Industrial Production at 15:00, France’strade balance and current account balance, at 17:00 Taiwan’s Consumer Price Index, at 21:30 Canada’s International Merchandise Trade and U.S. trade balance, at 25:45 remarks by Bostic, President of the Atlanta Fed, at 26:00 remarks by Nagel, President of the German Bundesbank, and a U.S. 3-year Treasury auction. We should pay close attention to the downside potential of the Canadian dollar, which has weakened in U.S. trading hours.

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