Last week, the Japanese government said it would change its bond plan, which caused long-term interest rates in Japan to fall. This helped the Canadian dollar rise against the yen. After that, a U.S. trade court stopped some tariffs, and people expected that tariffs on Canada might also be reduced. Because of this, the Canadian dollar went up to 105.56 yen.
However, President Trump said he would not step back and that tariffs on cars and aluminum would continue. This caused the Canadian dollar to fall again to 103.87 yen. Still, because the trade situation is unclear, people may continue to buy the Canadian dollar again.
This week, the Bank of Canada (BOC) is expected to lower interest rates by 0.25%. The market already expects this. Canada’s April inflation rate fell to 1.7%, compared to 2.3% the month before, and 2.6% before that. The jobless rate also rose from 6.7% to 6.9%. If the BOC says it may cut rates again in the future, the Canadian dollar could fall more.
This week’s expected CAD/JPY range: 103.20 – 105.60
Note: This information does not guarantee profits. Please make your own decisions when trading.