Attention May Turn to the Downside Potential of the Canadian Dollar, Which Has Weakened Against the Yen in Contrast to the U.S. Dollar

Attention May Turn to the Downside Potential of the Canadian Dollar, Which Has Weakened Against the Yen in Contrast to the U.S. Dollar

13.03.2026

In the U.S. currency market yesterday, the Canadian dollar fell against the yen after Canada’s January housing starts, released yesterday, came in lower than expected at a 4.8% increase, down from the previous month’s 6.8% rise. The CAD/JPY pair fell from 117.111 to 116.673.On the hourly chart, the price has fallen from the +2σ to the -2σ levels of the Bollinger Bands. On the 4-hour chart, while the price has not yet fallen below the 20-period moving average (MA), which is acting as support, it has been forming lower highs. On the daily chart, the price has pulled back after touching the +2σ level of the Bollinger Bands.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3410 to 1.3338. The downtrend along the 20-period moving average (MA) on the hourly chart continued.On the 4-hour chart, the pullback from the 200-period EMA continues, and on the daily chart, the retest of the 20-period MA has been completed, with the pair now back in a downtrend.

Today’s economic indicators include the New Zealand Manufacturing PMI at 6:30, UK GDP, UK Industrial Production, UK Manufacturing Output, and UK Goods Trade Balance at 16:00, the French Consumer Price Index at 16:45, Eurozone Industrial Production at 19:00, and Canada’sEmployment Report, Canadian Manufacturing Shipments, Canadian Q4 Capacity Utilization Rate, U.S. Q4 GDP, U.S. Personal Consumption Expenditures, U.S. PCE Deflator, U.S. Durable Goods Orders, and at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index and U.S. JOLTS Job Openings.We’ll be watching for further downside potential in the Canadian dollar against the yen, which has fallen in contrast to the U.S. dollar.