Attention may be turning to the downside potential of the Canadian dollar, which has fallen against the yen in contrast to the U.S. dollar

Attention may be turning to the downside potential of the Canadian dollar, which has fallen against the yen in contrast to the U.S. dollar

13.03.2026

In yesterday’s U.S. currency trading, 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. It dropped from the +2σ to the -2σ of the hourly Bollinger Bands.On the 4-hour chart, while the pair has not yet fallen below the 20-day moving average (MA), which is acting as support, it has been forming lower highs. On the daily chart, the pair has pulled back after touching the +2σ line 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 decline following the touch of the 200-period exponential moving average (EMA) has persisted, 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 a.m., UK GDP, UK Industrial Production, UK Manufacturing Output, and UK Goods Trade Balance at 4:00 p.m., the French Consumer Price Index at 4:45 p.m., and the EurozoneIndustrial Production, 21:30: Canada Employment Report, Canada Manufacturing Shipments, Canada Q4 Capacity Utilization, US Q4 GDP, US Personal Consumption Expenditures, US PCE Deflator, US Durable Goods Orders, and 23:00: US University of Michigan Consumer Sentiment Index and US JOLTS Job Openings.We would like to focus on the downside potential of the Canadian dollar, which has fallen against the yen in contrast to the US dollar.