The Canadian dollar remains firm; will the British employment report change the pound's direction?
20.10.2026
- U.K. August Unemployment Rate (ILO Method)
- Germany's October ZEW Economic Sentiment Survey
In the U.S. currency market the previous day, the U.S. dollar held steady against the euro, while the Canadian dollar also rose against the U.S. dollar. Canada’s September CPI came in at 3.1% year-over-year, falling short of the forecast of 3.2% but rising from the previous month’s 3.0%.The USD/CAD exchange rate fell from around 1.4154 on the previous trading day to around 1.4097. The yield on the 10-year U.S. Treasury note rose to about 5.14%, and the USD/JPY pair also climbed to the mid-158 yen range. Today, we will be watching to see if the dollar maintains its strong level against the yen.
European currencies were weighed down by protests in France and fiscal concerns. The euro fell to the $1.1210 level against the dollar the previous day, and the euro was also sold off against the pound. During today’s Asian trading session, the euro is trading around $1.1216 against the dollar, while the pound is trading around $1.3308 against the dollar.With the UK’s August ILO-style unemployment rate due at 3:00 p.m. and Germany’s October ZEW Economic Sentiment Survey due at 6:00 p.m., attention will focus on whether the contrast between the UK’s employment situation and Germany’s economic sentiment will influence the strength of European currencies.
Today’s economic indicators include the U.K.’s August unemployment rate and September jobless claims at 3:00 p.m., Germany’s October ZEW Economic Sentiment Survey at 6:00 p.m., and U.S. September housing starts and building permits at 9:30 p.m.The UK ILO unemployment rate is forecast at 4.9%, while Germany’s ZEW Expectations Index is expected to come in at 30.0, down from the previous reading of 34.7. Given that Canada’s CPI came in below expectations the previous day, we should pay close attention to the dollar’s reaction to the U.S. housing data among North American currencies and assess the relative strength of the Canadian dollar, the euro, and the pound.
Author: Keisuke Sakurai
