Will the employment report signal a shift in direction? Keep a close eye on the Canadian dollar.
07.02.2025
- Canada: Employment Statistics
- Germany: Industrial Production
In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen ahead of today’s employment report. The CAD/JPY pair dropped from 106.681 to 105.645. It continued to decline, with the 20-period moving average on the hourly chart capping its upside. On the 4-hour chart, the candlesticks have fallen to the -2σ level of the Bollinger Bands, while on the daily chart, the RSI continues to hover around 35.We will be watching closely to see if the Canadian dollar recovers depending on the employment report results.
Among European currencies, the euro fell against the yen for the second consecutive day. The EUR/JPY pair dropped from 158.834 to 157.050. A downtrend along the 10-period moving average on the hourly chart has been confirmed. On the 4-hour chart, the RSI has fallen just below 30, indicating oversold conditions. Similar price action is also evident on the daily chart. We will need to monitor the direction closely to see if the euro continues to weaken against the yen.
Today, at 8:30 AM, Japan’s All-Household Household Expenditure Survey; at 1:00 PM, Malaysia’s Industrial Production; at 1:30 PM, India’s Central Bank Policy Rate and Statement; at 2:00 PM, Japan’s Economic Sentiment Index; at 4:00 PM, Germany’s Industrial Production and Trade Balance;at 4:45 PM, France’s Current Account and Trade Balance; at 5:00 PM, Taiwan’s Consumer Price Index; at 9:00 PM, Mexico’s Consumer Price Index; at 10:30 PM, U.S. and Canadian Employment Reports; at 11:25 PM, remarks by Fed Governor Bowman; and at midnight, U.S. Wholesale Inventories and the University of Michigan Consumer Sentiment Index.We will be closely watching the Canadian dollar to see if the employment report brings any change in market direction.
Author: Keisuke Sakurai
