Should investors be wary of the upside potential for the Swiss franc, which is hitting new highs?
08.08.2023
- Germany's Consumer Price Index
- U.S. Trade Balance
In the U.S. currency market yesterday, the dollar traded in a narrow range against the euro. The EUR/USD pair lacked direction, fluctuating between 1.0965 and 1.1014. From a technical perspective, with the EUR/USD currently caught between the 75-day and 20-day moving averages, traders should be on the lookout for sudden price movements following the release of economic indicators during U.S. trading hours today.
Among European currencies, the Swiss franc rose against the yen following the release of Switzerland’s July employment statistics yesterday, which showed that the seasonally adjusted unemployment rate worsened by approximately 0.1 percentage points to 2.1% from 2.0% the previous month. The CHF/JPY pair surged from 161.941 to 164.064, setting a new all-time high.Technically speaking, while the CHF/JPY pair appears to have no upper limit, the weekly RSI is beginning to trend downward from above 70, so it is prudent to remain cautious of a pullback as the market consolidates.
Today, at 3:00 PM, Germany’s Consumer Price Index; at 3:30 PM, Hungary’s Consumer Price Index and Trade Balance; at 3:45 PM, France’s Trade Balance; at 5:00 PM, Taiwan’s Consumer Price Index and Trade Balance;Czech Republic’s unemployment rate at 3:30 PM, the U.S. NFIB Small Business Optimism Index at 7:00 PM, remarks by Harker, President of the Federal Reserve Bank of Philadelphia, at 9:15 PM, Canada’s international merchandise trade and the U.S. trade balance at 9:30 PM, U.S. wholesale inventories at 11:00 PM, and a U.S. 3-year Treasury auction at 2:00 AM.We must remain highly vigilant regarding the upside potential of the Swiss franc, which is hitting new highs.
Author: Keisuke Sakurai
