Will the Swiss franc, which has been gaining strength, continue its upward momentum during European trading hours?
12.09.2022
- UK GDP
- U.S. 3-Year Treasury Auction
Last weekend, the U.S. dollar index traded sideways around 108.6 before trending lower, causing the EUR/USD pair to rise.The pair rose by approximately 120 pips from last weekend’s low of 0.9992 to 1.0113. During today’s Asian session, it has continued its upward trend without fully filling the gap left by the opening. On the 4-hour chart, the pair is positioned just below the 200-period SMA. If it breaks above the 200-period SMA, the upper limit of the downtrend line at 1.0129 will act as a resistance level, so we should be cautious for a potential pullback.
Amid a broad strengthening of the yen, the Swiss franc held firm on the downside, limiting the CHF/JPY pair’s decline to 120 pips, from 148.825 to 147.519. Notably, the pair hit a new high for the year during today’s Asian trading session, and the current rate stands at 148.871. With the SNB’s policy rate announcement scheduled for next week, we will be watching to see if the franc continues to strengthen.
Today, at 15:00 Asia time, we have UK GDP, UK industrial production, UK manufacturing production, UK trade balance, and Japanese machine tool orders; and at 16:00 Europe time, we have Turkey’s current account balance,Turkish employment data, at 21:00: Indian industrial production and Indian consumer price index, and during U.S. trading hours at 24:30: U.S. 3-year Treasury auction and U.S. 10-year Treasury auction. Chinese markets are closed today for the Mid-Autumn Festival. We will be watching to see if the Swiss franc, which has been strengthening, continues to gain ground during European trading hours.
Author: Keisuke Sakurai
