Will the employment report signal a shift in direction? Keep a close eye on the Canadian dollar’s trajectory.

Will the employment report signal a shift in direction? Keep a close eye on the Canadian dollar’s trajectory.

07.02.2025

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 further gains. 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’s schedule includes the Japan All-Household Household Expenditure Survey at 8:30, Malaysia’s Industrial Production at 13:00, the Reserve Bank of India’s policy rate and statement at 13:30, Japan’s Economic Sentiment Index at 14:00, Germany’s Industrial Production and Trade Balance at 16:00,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 U.S. Federal Reserve 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.

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