Should we wait and see how the CHF/JPY pair performs as it continues to hit new highs?
03.08.2023
- U.S. Services PMI
- U.S. – Barkin: Remarks by the President of the Richmond Federal Reserve Bank
In the previous day’s U.S. trading session, the U.S. dollar emerged as the strongest currency after the July ADP employment report, released during U.S. trading hours, came in at 324,000—significantly exceeding the market forecast of 189,000. The USD/JPY pair fell from 143.332 to 142.227 before rebounding to 143.489.During today’s Asian session, the pair has broken through yesterday’s high, touching 143.891. With key economic indicators, such as initial jobless claims, scheduled for release later today, traders should keep a close eye on the dollar’s movements during U.S. trading hours.
European currencies saw the Swiss franc weaken against the yen after yesterday’s Swiss Purchasing Managers’ Index (PMI) fell to 38.5 from 44.9 the previous month. The CHF/JPY pair dropped from 164.034 to 162.101.It broke significantly below the 20-period moving average (MA) on the 4-hour chart. However, the yen has weakened again during today’s Asian session and has already broken through the key 163-yen level, so we will need to carefully assess currency strength and weakness during the European session.
Today’s schedule includes Germany’s trade balance at 3:00 PM, Switzerland’s Consumer Price Index at 3:30 PM, Turkey’s Consumer Price Index and Producer Price Index at 4:00 PM, the UK’s Services PMI at 5:30 PM, the Bank of England’s interest rate decision and policy statement at 8:00 PM, a press conference by Bank of England Governor Bailey at 8:30 PM, and the U.S. Challenger job cuts report,21:30: US Initial Jobless Claims, US Q2 Nonfarm Productivity, Remarks by Barkin, President of the Richmond Fed; 22:45: US Services PMI; 23:00: US ISM Non-Manufacturing PMI; 23:30: US Weekly Natural Gas Inventories.We will closely monitor the movement of the yen-dollar pair, which continues to hit new highs.
Author: Keisuke Sakurai
