In Canada’s general election, the Liberal Party led by Prime Minister Carney won. At first, this news caused the Canadian dollar to rise against the yen.
However, the party only won 165 seats—less than the 172 needed for a majority. Because of this, worries about political instability caused the Canadian dollar to drop soon after.
At the same time, trade talks between the U.S. and China are not going well. If Prime Minister Carney continues to take a strong stance against President Trump, it could make negotiations more difficult. This could also make it harder for the Canadian dollar to rise.
If the Bank of Japan shows signs that it may raise interest rates in tomorrow’s meeting, the Canadian dollar may fall further against the yen.
Expected CAD/JPY range: 103.20 yen to 102.30 yen (61.8%)
Note: This information does not guarantee profits. Please make your own decisions when trading.