Last year, the Bank of Canada (BOC) was one of the first in developed countries to lower interest rates. They cut rates five times, reducing them from 5% to 3.25%, a total drop of 1.75%. While the Canadian dollar hit a four-year low against the U.S. dollar, it remained steady against the yen. It has been trading near 110 yen, which is halfway between its high of 118.85 yen and low of 101.66 yen, showing solid support.
Today’s Canada employment report is expected to show a rise in the unemployment rate compared to last month. If this happens, expectations for further interest rate cuts may increase.
However, steady performance continues due to Canada’s resilience, even with tariff pressures from the new U.S. administration. This shows Canada’s underlying strength, making it a good opportunity for buying at lower levels.
Forecast Range for CAD/JPY: 110.60 – 109.00 yen
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