Should We Keep an Eye on the Resilience of the Swiss Franc, Now the Weakest Currency?
08.05.2023
- U.S. Wholesale Inventories
- 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.It rebounded up to the 200-period SMA on the hourly chart. Since USD/JPY rebounded after touching the 20-period MA following a decline from resistance at the daily 200-period SMA, it will be worth watching whether the U.S. 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 the April consumer price index showed a year-over-year decline to 2.6% from the previous month’s 2.9%. The franc fell against the yen from 151.644 to 150.213.The decline followed the 20-period moving average (MA) on the hourly chart. However, during today’s Asian trading session, the pair has broken above the 20-period MA on the hourly chart and is testing an upward move, so it will be worth watching to see if the franc recovers during European trading hours.
Today’s economic indicators include German industrial production at 15:00, Taiwan’s trade balance at 17:00, the Eurozone investor sentiment index at 17:30, U.S. wholesale inventories at 23:00,at 24:30, U.S. 6-month bill auction, and at 29:45, remarks by Kashkari, President of the Minneapolis Fed. We will be closely monitoring the Swiss franc’s resilience as it has become the weakest currency.
Author: Keisuke Sakurai
