Should We Keep an Eye on the Strength of the Swiss Franc?
28.05.2021
- Chicago Purchasing Managers' Association Business Activity Index
- Swiss KOF Leading Index
Yesterday, trading in both European and U.S. markets was characterized by minimal price movements, with the Nasdaq closing at 13,736 points—down 0.01% from the previous day—and 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 $67.2 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. The GBP/JPY pair, 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 as it approaches 110.00. However, USD/CHF has completely given back its earlier gains, so this is a situation where we should also pay attention to the strength of the Swiss franc.
Today, at 15:00, Germany’s Import Price Index will be released; at 15:45, France’s Q1 GDP (revised), France’s Producer Price Index, and France’s Consumer Price Index (flash estimate);at 4:00 PM, the Swiss KOF Leading Index; at 9:30 PM, U.S. personal income and the U.S. core PCE deflator; at 10:45 PM, the U.S. Chicago Purchasing Managers’ Index; and at 11:00 PM, the U.S. University of Michigan Consumer Sentiment Index (final reading).We will be closely monitoring how the U.S. dollar—which has begun to rise again—and other currencies perform.
Author: Keisuke Sakurai
