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 from the -2σ to the +3σ levels on the hourly Bollinger Bands.On the 4-hour chart, the RSI is hovering between 33 and 42, while the daily chart shows a price recovery following last month’s new low. As the Canadian dollar remains weak and the U.S. dollar is rising during today’s Asian trading session, 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 euro/yen pair rose from 171.778 to 172.546. An uptrend has emerged 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 a.m., Australia’s second-quarter current account balance at 10:30 a.m., remarks by Bank of Japan Deputy Governor Himeno at 10:30 a.m., France’s budget balance at 3:45 p.m.,at 6:00 PM, the Eurozone Consumer Price Index; at 10:45 PM, the U.S. PMI Purchasing Managers' Index; at 11:00 PM, remarks by German Bundesbank President Nagel, the U.S. ISM Manufacturing Index, and U.S. Construction Spending. I want to closely monitor the downside potential of the Canadian dollar, which has fallen against the U.S. dollar.