With the Canadian dollar facing resistance at higher levels, attention may turn to its potential rebound during U.S. trading hours

With the Canadian dollar facing resistance at higher levels, attention may turn to its potential rebound during U.S. trading hours.

10.01.2025

In yesterday's U.S. currency markets, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 110.175 to 109.484, following a downtrend along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price broke well below the 20-period MA and fell to around the 75-period MA. On the daily chart, the price has failed to break through the resistance zone formed by the 200-period simple moving average (SMA) above it and has since reversed lower.

Among European currencies, the pound was the weakest during U.S. trading hours. The GBP/JPY pair fell from 195.797 to 193.505. The downtrend along the 10-period moving average (MA) on the hourly chart continued. On the 4-hour chart, the pair has broken below the 200-period moving average (SMA) that had been providing support, and on the daily chart, prices are declining after failing to surpass last month’s high. We will be watching closely to see if the pound’s decline accelerates during today’s U.S. trading hours.

Today’s economic indicators include the Swiss unemployment rate at 15:45, the Norwegian CPI, Turkish labor force participation rate, Turkish industrial production, and Swedish industrial production at 16:00, Thai foreign exchange reserves at 16:30, French industrial production, French manufacturing production index, and French consumer spending at 16:45, and IndianIndustrial Production, 10:30 PM US Employment Report, Canada Employment Report, and 12:00 AM US University of Michigan Consumer Sentiment Index. We will be watching for a rebound in the Canadian dollar during US trading hours as it faces resistance on the upside.