Concerns over further downside potential for the Swiss franc against the yen
11.05.2022
- U.S. MBA Mortgage Applications Index
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
Yesterday, the U.S. dollar held steady against the euro, with the EUR/USD pair falling by about 60 pips from 1.058 to 1.052. However, during today’s Asian trading session, it is attempting to rise again, continuing to trade within the range established since the end of last month. The daily volatility of the EUR/USD pair has been declining, and as it continues to fluctuate wildly, traders should be on guard for sharp price movements should it break out in either direction.
While cross-yen pairs remained firm, the Swiss franc weakened, with CHF/JPY falling approximately 120 pips from 134.06 to 130.43, hitting its lowest level since February of this year. CHF/JPY has already fallen well below the 200-period SMA on the 4-hour chart and has entered a "vacuum zone" on the daily chart where there is no support from moving averages, so we should remain cautious of further declines.
Today’s schedule includes remarks by German Bundesbank President Nagel at 16:15 CET, remarks by ECB President Lagarde at 17:00 CET, the U.S. MBA Mortgage Applications Index at 20:00, the U.S. Consumer Price Index at 21:30, and U.S. weekly crude oil inventories at 23:30.at 1:00 AM, remarks by Bostic, President of the Atlanta Fed; at 2:00 AM, the U.S. 10-year Treasury auction; and at 3:00 AM, the U.S. budget balance. We should remain cautious about the downside potential for the Swiss franc against the yen.
Author: Keisuke Sakurai
