Should we keep an eye on the strength of the Swiss franc?
28.05.2021
- Chicago Purchasing Managers' Index
- Swiss KOF Early Indicator
Yesterday, trading was subdued in both European and U.S. markets. The Nasdaq closed at 13,736 points, down 0.01% from the previous day, remaining virtually unchanged. The yield on the 10-year U.S. Treasury note rose again and currently stands at 1.615%, while crude oil climbed to the $67.20 range. Gold also held steady at $1,895.
The foreign exchange market is generally trending toward a weaker yen, with cross-yen pairs rising across the board. GBP/JPY, which saw particularly sharp gains, rose by 200 pips yesterday alone. It is currently trading near the high of 155.96. USD/JPY is also rising, having touched 109.95.It is gaining momentum and approaching the 110.00 level. However, USD/CHF has completely given up its earlier gains, making this a situation where we should also pay attention to the strength of the Swiss franc.
Today, at 3:00 PM, Germany’s Import Price Index will be released; at 3:45 PM, France’s Q1 GDP (revised), France’s Producer Price Index, and France’s Consumer Price Index (flash estimate);the Swiss KOF Leading Index at 4:00 PM, U.S. personal income and the U.S. core PCE deflator at 9:30 PM, the U.S. Chicago PMI at 10:45 PM, and the U.S. University of Michigan Consumer Sentiment Index (final reading) at 11:00 PM. We will be closely monitoring how the U.S. dollar, which has begun to rise again, and other currencies perform.
Author: Keisuke Sakurai
