All eyes are on the resilience of the Swiss franc, now the world’s weakest currency
08.05.2023
- Rice · Wholesale Inventory
- European Investor Sentiment Index
Last weekend, the U.S. dollar rose against the yen following the release of the U.S. April employment report on the 5th, which showed that average hourly wages had increased by 0.5%.The USD/JPY pair rose by approximately 120 pips from 133.891 to 135.103, rebounding up to the 200-period simple moving average (SMA) on the hourly chart. Since the USD/JPY pair rebounded after touching the 20-period moving average (MA) following a decline from resistance at the daily 200-period SMA, it will be worth watching whether the US dollar continues to rebound against the yen heading into the latter half of the week.
Among European currencies, the Swiss franc emerged as the weakest after the release of April’s consumer price index showed a year-over-year decline to 2.6% from the previous month’s 2.9%. The CHF/JPY pair fell from 151.644 to 150.213.The decline followed the 20-period moving average (MA) on the hourly chart. However, during today’s Asian session, the pair has broken above the 20-period MA and is testing an upward move, so it will be worth watching whether the franc recovers during the European session.
Today’s economic indicators include German industrial production at 3:00 PM, Taiwan’s trade balance at 5:00 PM, the Eurozone investor sentiment index at 5:30 PM, U.S. wholesale inventories at 11:00 PM, the U.S. 6-month Treasury bill auction at 12:30 AM, and remarks by Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, at 5:45 AM.We will be closely monitoring the resilience of the Swiss franc, which has become the weakest currency.
Author: Keisuke Sakurai
