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

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

08.01.2026

In yesterday’s U.S. trading session, 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 the Eurozone’s Consumer Confidence Index, Economic Sentiment Index, Producer Price Index, and Employment Statistics at 19:00,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 Fed Governor Mian 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.