Market participants are likely to keep a close eye on the Canadian dollar’s price movements at the start of the week, as it shows signs of strength.

Market participants are likely to keep a close eye on the Canadian dollar’s price movements at the start of the week, as it shows signs of strength.

16.06.2025

Last weekend, the Canadian dollar became the strongest currency against the U.S. dollar during U.S. trading hours after Canada’s first-quarter capacity utilization rate, released on the 13th, rose to 80.1 from the previous reading of 79.8. The CAD/JPY pair rose from 104.793 to 106.141, surging from the -3σ to the +2σ levels on the hourly Bollinger Bands.On the 4-hour chart, the 200-day SMA is acting as a support level, while on the daily chart, the pair is currently attempting to break above the 200-day SMA overhead.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3631 to 1.3517, briefly dipping below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, price action has remained within the 20-period moving average (MA), while on the daily chart, the pair has pulled back from the +2σ level of the Bollinger Bands. We should watch to see if the pound continues to face resistance during today’s European trading session.

Today's economic indicators include the UKLightMove House Prices at 8:01, Swiss Producer and Import Prices at 15:30, remarks by German Bundesbank President Nagel at 16:00, Canadian Housing Starts at 21:15, the U.S. New York Fed Manufacturing Index at 21:30, Canadian Existing Home Sales at 22:00, and a U.S. 20-year Treasury auction at 26:00.We will carefully monitor the early-week price movements of the firm Canadian dollar.