All eyes are on whether the Canadian dollar, now the weakest currency, will recover

All eyes are on whether the Canadian dollar, now the weakest currency, will recover

31.01.2025

In the U.S. currency market yesterday, the Canadian dollar was the weakest currency during U.S. trading hours. The CAD/JPY pair traded between 107.776 and 105.746. The price movement deviated significantly from the -3σ line of the hourly Bollinger Bands. On the 4-hour chart, the RSI plummeted to 30, and on the daily chart, the pair broke well below this month’s low. It is now approaching last month’s low.

Among European currencies, the pound weakened against the U.S. dollar. The GBP/USD pair traded between 1.2476 and 1.2407. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price is stalling as the 200-period simple moving average (SMA) acts as resistance, while on the daily chart, the price is retesting the level after breaking above the 20-period MA. We will be watching for signs of a rebound in the pound during today’s U.S. trading session to gauge the market’s direction.

Today’s economic indicators include: Japan’s housing starts at 2:00 PM, Germany’s retail sales and the UK’s Nationwide house prices at 4:00 PM, Switzerland’s retail sales at 4:30 PM, France’s consumer price index and producer price index at 4:45 PM, and Germany’sunemployment rate at 4:00 PM, German CPI at 10:00 PM, Canadian GDP at 10:30 PM, U.S. personal income, U.S. PCE deflator, remarks by Fed Governor Bowman at 10:30 PM, and the U.S. Chicago PMI at 11:45 PM. We will be watching closely to see if the Canadian dollar, which has become the weakest currency, will show signs of recovery.

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