Will the weakening Canadian dollar fall further? Market participants are closely watching price movements during U.S. trading hours.

Will the weakening Canadian dollar fall further? Market participants are closely watching price movements during U.S. trading hours.

08.01.2026

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 113.478 to 113.065. It has been forming lower highs and lower lows along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, a downtrend is forming along the 10-period MA, and on the daily chart, the price has broken below the support line formed by the 20-period MA with a real body candle.On the monthly chart, prices have failed to reach the high from two years ago and are trending downward, so we should watch for further weakness in the Canadian dollar during U.S. trading hours.

Among European currencies, the Swiss franc continued to fall against the yen. The CHF/JPY pair dropped from 197.236 to 196.384.It declined along the 20-period moving average (MA) on the hourly chart. Similar price action is observed on the 4-hour chart, and on the daily chart, the pair has fallen for three consecutive days and is now at a critical juncture, poised to break below the 20-period MA line that had been providing support. Furthermore, on the weekly chart, the pair has pulled back from the +2σ level of the Bollinger Bands, so caution is warranted regarding the possibility of further declines heading into the weekend.

Today’s schedule includes Japan’s Monthly Labor Survey at 8:30, Japan’s Foreign and Domestic Securities Investment at 8:50, Australia’s Trade Balance at 9:30, Japan’s Consumer Sentiment Index at 14:00, Germany’s New Manufacturing Orders at 16:00, and at 19:00, the Eurozone’s Consumer Confidence Index, Economic Sentiment Index, Producer Price Index, and Employment Statistics,at 9:30 PM, U.S. Challenger Layoffs; at 10:30 PM, U.S. Nonfarm Productivity, Canada’s International Merchandise Trade, U.S. Trade Balance, and U.S. Initial Jobless Claims; and at midnight, remarks by U.S. Federal Reserve Governor Mylan and U.S. Wholesale Inventories. We will be closely monitoring price movements during U.S. trading hours to see if the weakening Canadian dollar will extend its decline.

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