Should investors be wary of the upside potential of the Swiss franc, which is hitting new highs?

Should investors be wary of the upside potential of the Swiss franc, which is hitting new highs?

08.08.2023

In U.S. currency trading yesterday, the dollar traded in a narrow range against the euro. The EUR/USD pair moved between 1.0965 and 1.1014, lacking clear direction. From a technical perspective, the EUR/USD is currently caught between the 75-day and 20-day moving averages, so 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 from 2.0% in the previous month to 2.1%. The CHF/JPY pair surged from 161.941 to 164.064, setting a new all-time high.Technically, while the CHF/JPY pair appears to have no upper limit, the weekly RSI is beginning to trend downward after moving above 70. Therefore, as a precaution, investors should remain vigilant for 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.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran