Market Participants May Be Watching for Further Downside Potential in the Canadian Dollar Against the U.S. Dollar
02.09.2025
- U.S. PMI (Purchasing Managers' Index)
- U.S. Construction Spending
In the U.S. currency market the previous day, 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 prices recovering from last month’s low.As the Canadian dollar remains weak and the U.S. dollar is rising during today’s Asian trading session, we will be closely monitoring whether 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 employment statistics for the eurozone 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, establishing an uptrend 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; on the daily chart, the pair is approaching the level where it hit a new high last month.
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 Himino at 10:30, France’s budget balance at 15:45,at 18:00, the Eurozone Consumer Price Index; at 22:45, the U.S. PMI; at 23:00, remarks by German Bundesbank President Nagel, the U.S. ISM Manufacturing Index, and U.S. construction spending.I would like to carefully monitor the downside potential of the Canadian dollar, which has fallen against the U.S. dollar.
Author: Keisuke Sakurai
