Will the yen remain strong and the franc remain weak?
18.06.2021
- Germany: Producer Price Index
- The Swiss franc is falling
Yesterday, while the Nasdaq rebounded in U.S. markets, the Dow Jones Industrial Average continued to decline, resulting in flat stock prices, lower commodity prices, and a stronger U.S. dollar.The fear index (VIX) remained stable at 17.5, while BTC/USD fell below $40,000 again and is currently trading in the $37,800 range. Additionally, the Nikkei 225, which had fallen below 29,000 yen, recovered to the 29,000 yen level and is currently at 29,076 yen.
In the foreign exchange market, the Swiss franc plummeted starting during yesterday’s European trading session. The CHF/JPY pair fell by about 100 pips from 121.87 to 119.93, and as of now during Asian trading hours, it remains range-bound near its lows. The USD/CHF pair rose from 0.900 to 0.918, reaching its highest level since late April of this year.
As for today’s economic indicators, UK retail sales and the German producer price index are scheduled for 3:00 PM, and Bank of Japan Governor Kuroda is set to hold a press conference at 3:30 PM. Other than that, no major economic releases or key speeches are scheduled. With no major events on the horizon, price movements are likely to be straightforward, so I plan to closely monitor currency strength and watch price trends closely.
