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 the U.S. currency market yesterday, 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 significantly below the 20-period moving average (MA) and fell to around the 75-period MA. On the daily chart, the price is failing to break through the resistance zone formed by the 200-period simple moving average (SMA) above it and is rebounding lower.

Among European currencies, the pound became the weakest currency 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 SMA, which had been acting as 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 session.

Today’s economic indicators include the Swiss unemployment rate at 15:45; the Norwegian Consumer Price Index, Turkey’s labor force participation rate, Turkey’s industrial production, and Sweden’s industrial production at 16:00; Thailand’s foreign exchange reserves at 16:30; and at 16:45, France’sIndustrial Production, France’s Manufacturing Production Index, and France’s Consumer Spending; at 19:30, India’s Industrial Production; at 22:30, the U.S. Employment Report and Canada’s Employment Report; and at 24:00, the University of Michigan Consumer Sentiment Index.We will be watching for a potential rebound in the Canadian dollar during U.S. trading hours, as it has been facing resistance on the upside.