Will the franc's rise continue?
05.10.2021
- France: Industrial Production
- UK Services PMI (Final Reading)
Yesterday, in the U.S. market, the three major stock indices all fell, creating a risk-off sentiment characterized by falling stock prices, rising interest rates, and higher crude oil prices. The rise in WTI crude oil prices was particularly sharp; it is currently trading around $77.4 per barrel, reaching its highest level in about seven years.Commodity prices are surging following reports that OPEC+ will maintain its reduction of production cuts by 400,000 barrels per day.
As of yesterday, the Swiss franc had become the strongest currency in the foreign exchange market, and the CHF/JPY pair rose sharply, climbing about 120 pips from 118.98 to 120.18.The CHF/JPY pair has broken above its recent high of 120.20 on the 4-hour chart, and depending on the strength of the U.S. dollar, we should keep in mind the possibility of a rise toward the daily high of around 120.27.
Today’s schedule includes French industrial production at 15:45, the UK services PMI (final reading) at 17:30, the Canadian trade balance and U.S. trade balance at 21:30, the U.S. services PMI (final reading) at 22:45,at 11:00 PM, the U.S. ISM Non-Manufacturing Index; at 12:00 AM, remarks by ECB President Lagarde; and at 2:15 AM, remarks by U.S. Federal Reserve Vice Chair Quarles.Amid a general risk-off sentiment, we want to closely monitor how European currencies will respond.
Author: Keisuke Sakurai
