With the Swiss National Bank keeping rates unchanged at 1.75%—contrary to market expectations—all eyes are on the Swiss franc’s resilience
22.09.2023
- Remarks by Federal Reserve Governor Cook
- Germany: Manufacturing/Services PMI
In yesterday’s U.S. trading session, the U.S. dollar fell against the yen after the September Philadelphia Fed Manufacturing Index, released yesterday, deteriorated sharply from 12.0 the previous month to -13.5. The USD/JPY pair retreated after hitting a monthly high of 148.457, falling to 147.321.Although a slight rebound is visible during today’s Asian session, the pair is falling after touching the 20-period moving average on the hourly chart, so caution is advised regarding price movements during the U.S. session.
In the European currency markets, the Swiss franc fell sharply against the yen following yesterday’s announcement by the Swiss National Bank (SNB) that it had kept its policy rate unchanged at 1.75%, as in the previous meeting. The CHF/JPY pair dropped by approximately 2 yen, from 165.058 to 162.975, and broke sharply below the 200-period EMA on the 4-hour chart.On the daily chart, a higher time frame, the pair has fallen sharply from the 20-day moving average and reached the -3σ level of the Bollinger Bands, so we will be closely monitoring whether the decline continues.
Today’s schedule includes UK retail sales at 3:00 PM, a press conference by Bank of Japan Governor Ueda at 3:30 PM, French manufacturing and services PMIs at 4:15 PM, German manufacturing and services PMIs at 4:30 PM, Taiwan’s unemployment rate and Eurozone manufacturing and services PMIs at 5:00 PM, and a speech by Fed Governor Cook at 5:30 PM.manufacturing/services PMI, 7:00 PM UK CBI Business Survey, 9:30 PM Canada Retail Sales, 9:50 PM US remarks by Fed Governor Cook, and 10:45 PM US manufacturing/services PMI. We will be watching for the Swiss franc’s rebound following the decision to keep rates unchanged at 1.75%, contrary to market expectations.
Author: Keisuke Sakurai
