Concerns Over a Decline in the Swiss Franc?
14.09.2021
- Remarks by Bahtman, President of the German Central Bank
- Switzerland—Producer Import Prices
Yesterday, the Dow Jones Industrial Average and the S&P 500 rebounded in U.S. markets, leading to a “risk-on” environment characterized by rising stock prices, falling interest rates, and higher crude oil prices. Today, the Nikkei 225 has also recovered to the 30,600-yen range, while BTC/USD has held its ground following last week’s decline and is trading in the $45,100 range.
In the foreign exchange market, the Swiss franc became the weakest currency starting during yesterday’s European trading session, and the CHF/JPY pair fell from 120.03 to as low as 119.09 at one point.From a technical perspective, the Swiss franc is already trading below its 20-day moving average on the daily chart, and with no significant support in sight until around 118.8, traders should be wary of further downside if a rebound fails to materialize.
Today’s schedule includes the UK unemployment rate and new jobless claims at 15:00, Swiss producer import prices at 15:30, Turkish housing prices at 16:00, and at 16:35, remarks by Germanremarks by Bundesbank President Bahtmann, at 19:00 the U.S. NFIB Small Business Optimism Index, at 21:30 the U.S. Consumer Price Index and Canadian Manufacturing Sales, and at 7:45 the following day New Zealand’s Q2 Current Account Balance.We want to closely monitor how European currencies—which have been showing notable weakness—will perform in the first half of the week.
Author: Keisuke Sakurai
