Despite Weak Canadian Employment Data, Market Watches Upside Potential for the Canadian Dollar Against the Yen
12.01.2026
- U.S. - Barkin: Remarks by the President of the Richmond Federal Reserve Bank
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
Last weekend, the Canadian dollar rose against the yen despite the December employment statistics released on the 9th showing that the unemployment rate had worsened by 0.3 percentage points from the previous month’s 6.5% to 6.8%. The CAD/JPY pair rose from 113.023 to 113.849, forming an uptrend along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 200-period simple moving average (SMA) is acting as a support level, causing prices to rebound, while on the daily chart, the pair has reclaimed the 20-period moving average (MA) after previously breaking below it.
European currencies fell against the U.S. dollar after Germany’s November industrial production, released on the 9th, remained unchanged from the previous month at 0.8% year-on-year.The euro-dollar pair fell for the fourth consecutive day, dropping from 1.1661 to 1.1617. On the 4-hour chart, the pair declined after encountering resistance at the 10-day moving average (MA), and on the daily chart, the price broke below the 75-day MA, which had previously provided support. However, during today’s Asian trading session, the pair has fully recovered the losses incurred over the weekend.
Today’s key events include a U.S. 3-year Treasury auction at 25:30, remarks by Bostic, President of the Atlanta Fed, at 26:30, remarks by Barkin, President of the Richmond Fed, at 26:45, a U.S. 10-year Treasury auction at 27:00, and remarks by Williams, President of the New York Fed, at 8:00 the following day.No other notable economic indicators are scheduled for today. We will also be watching for upside potential in the Canadian dollar against the yen, despite the deterioration in Canadian employment data.
Author: Keisuke Sakurai
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