Market participants are likely keeping a close eye on the downside potential of the Canadian dollar, which has fallen against the U.S. dollar

Market participants are likely keeping a close eye on the downside potential of the Canadian dollar, which has fallen against the U.S. dollar

02.09.2025

In yesterday’s U.S. currency trading, the Canadian dollar weakened, much like the Japanese yen. The USD/CAD pair rose from 1.3720 to 1.3761. The price moved within the Bollinger Bands on the hourly chart, ranging from -2σ to +3σ.On the 4-hour chart, the RSI is hovering between 33 and 42, while the daily chart shows a price recovery underway following a new low set last month. Notably, the Canadian dollar remains weak and the U.S. dollar is rising during today’s Asian trading session, so we will be watching closely to see if the Canadian dollar weakens further against the U.S. dollar following the release of economic indicators during U.S. trading hours.

European currencies rose against the yen after yesterday’s release of the July EU employment statistics showed that the unemployment rate remained unchanged from the previous month’s 6.2%.The EUR/JPY pair rose from 171.778 to 172.546. An uptrend has formed along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 10-period MA is providing support at the lower end while candlesticks are turning upward, and on the daily chart, the pair is approaching the level where last month’s high was set.

Today’s economic indicators include Japan’s monetary base at 8:50, Australia’s second-quarter current account balance at 10:30, remarks by Bank of Japan Deputy Governor Himeno, France’s budget balance at 15:45,at 6:00 PM: Eurozone Consumer Price Index; at 10:45 PM: U.S. PMI Purchasing Managers' Index; at 11:00 PM: Remarks by German Bundesbank President Nagel, U.S. ISM Manufacturing Index, and U.S. Construction Spending. I intend to closely monitor the downside potential of the Canadian dollar, which has fallen against the U.S. dollar.

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