Should we wait and see how much room the Canadian dollar has to rebound, given its limited upside?
10.06.2025
- UK Employment Statistics
- Australia's Westpac Consumer Confidence Index
In yesterday's U.S. trading session, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 105.847 to 105.281, with price action fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 20-period moving average is barely providing support on the downside, while on the daily chart, the 200-period simple moving average looms overhead as resistance. We will need to watch for any further weakening of the Canadian dollar’s momentum during today’s U.S. trading hours.
Among European currencies, the Swiss franc was the weakest during U.S. trading hours. The CHF/JPY pair fell from 176.221 to 175.581, moving across the 20-period moving average on the hourly chart. On the 4-hour chart, while the pair is finding support at the 10-period moving average, it has been unable to break above previous highs. On the daily chart, the pair is currently pulling back after touching the +3σ line of the Bollinger Bands.
Today’s economic indicators include the UK BRC same-store sales at 8:01, Japan’s M2 money supply at 8:50, and Australia’sWestpac Consumer Confidence Index at 8:50, the Australian NAB Business Conditions Survey at 10:30, Japanese Machine Tool Orders and the UK Unemployment Rate and Employment Statistics at 15:00, the US NFIB Small Business Optimism Index at 19:00, South African Manufacturing Output at 20:00, and a US 3-year Treasury auction at 26:00.We intend to cautiously monitor the Canadian dollar’s potential for a rebound, given its limited upside.
Author: Keisuke Sakurai
