All eyes are on whether the franc, now the world’s strongest currency, will maintain its momentum
19.01.2023
- U.S. Initial Jobless Claims
- Remarks by ECB President Lagarde
In the previous day's U.S. currency trading, the dollar and the euro traded in a back-and-forth pattern, with the EUR/USD pair ranging between 1.0766 and 1.0887.The EUR/USD pair is currently in a consolidation phase straddling the 20-period moving average (MA) on the 4-hour chart, with price action seeking direction. On the other hand, on the higher timeframe daily chart, the 10-period MA is acting as support, and the uptrend remains intact. Therefore, we will be closely watching to see if today’s release of the ECB Governing Council minutes sparks any movement.
While European currencies saw cross-yen pairs generally trading in a range-bound pattern, the Swiss franc found support at lower levels and halted its decline. The CHF/JPY pair rose by about 3.8 yen from 138.615 to 142.437 before pulling back to 140.397. As the Swiss franc also showed strength against the U.S. dollar, we will be watching its price movements during U.S. trading hours today.
Today’s schedule includes Swiss producer import prices at 4:30 p.m., remarks by ECB President Lagarde at 7:30 p.m., the TCMB policy rate and statement in Turkey at 8:00 p.m., the release of the ECB meeting minutes at 9:30 p.m., and Canadian wholesale sales at 10:30 p.m.,Canada’s House Price Index, U.S. Initial Jobless Claims, U.S. Housing Starts, and the U.S. Philadelphia Fed Business Outlook Index; at 11:00 PM, U.S. remarks by Collins,Boston Fed President’s remarks, 12:30 AM: US weekly natural gas inventories, 1:00 AM: US weekly crude oil inventories, 3:15 AM: US Brainard: Fed Vice Chair’s remarks. We will closely monitor the direction of the Swiss franc to see if its momentum as the strongest currency continues.
Author: Keisuke Sakurai
