CAD/JPY Forecast Prior to Canadian Employment Data and Trump Tariff Decision

Canadian Dollar Faces Renewed Pressure

This week, the Canadian dollar has experienced increased downward momentum, influenced by weaker economic indicators at home and its vulnerability to shifts in oil prices, particularly after the United States assumed control over Venezuela. Meanwhile, the Japanese yen has benefited from investors seeking safety ahead of an anticipated US Supreme Court decision regarding tariffs imposed during the Trump administration.

With uncertainty over whether a ruling will be issued before markets close on Friday, there is a heightened risk of significant price movements over the weekend or into the following week. My expectation is that the court will either uphold the tariffs or defer the matter to Congress, while the likelihood of the tariffs being declared unlawful appears slim. Financial markets have largely...