Market participants are watching to see if the Swiss franc will hit a new high against the yen
02.08.2023
- SVME Purchasing Managers' Index (Switzerland)
- U.S. ADP Employment Report
In the U.S. currency market yesterday, the U.S. dollar strengthened against the euro after the June JOLTS job openings report, released yesterday, showed an increase from 9.824 million in the previous month to 9.582 million. The EUR/USD pair fell from 1.1003 to 1.0951. The downtrend continued as the pair faced resistance at the 10-period moving average on the 4-hour chart.Although the EUR/USD pair showed a temporary rebound last weekend, the daily RSI has been trending downward from above 70, so investors should remain cautious of a continued decline in the euro.
Among European currencies, the Swiss franc traded in a narrow range against the yen today ahead of the release of the manufacturing PMI. While other yen crosses rose, the CHF/JPY pair faced resistance at higher levels and fluctuated within the 162.884–163.819 range.Technically, CHF/JPY is currently in the process of setting a new all-time high, and the break above the 20-period moving average on the 4-hour chart earlier this week has had a significant impact. Therefore, it will be worth watching to see if the Swiss franc extends its gains during European trading hours.
Today’s schedule includes Thailand’s policy rate at 4:00 PM, Switzerland’s SVME Purchasing Managers’ Index at 4:30 PM, Brazil’s Consumer Price Index at 5:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, the U.S. ADP Employment Report at 9:15 PM, Singapore’s Manufacturing PMI at 10:00 PM, U.S. weekly crude oil inventories at 11:30 PM, and Russia’sunemployment rate, and Russia’s retail sales. We will be watching closely to see if the Swiss franc can reach a new high against the yen.
Author: Keisuke Sakurai
