With the unemployment rate holding steady, all eyes are on the direction of the Swiss franc, which has risen against the yen

With the unemployment rate holding steady, all eyes are on the direction of the Swiss franc, which has risen against the yen

09.10.2023

In the U.S. currency markets last weekend, the dollar weakened toward the close after the U.S. employment report showed that while the unemployment rate remained unchanged at 3.8%, average hourly earnings (year-over-year) fell by 0.1 percentage points to 4.2%. The EUR/USD pair fell to 1.0482 before rebounding sharply, recovering to 1.0598.Although the EUR/USD pair recovered following last weekend’s rebound, it remains below the 20-day moving average on the daily chart, and as the downtrend continues, we should carefully monitor the market’s direction at the start of the week.

European currencies saw the Swiss franc rise against the yen following the release of Switzerland’s September employment statistics last weekend, which showed the seasonally adjusted unemployment rate remained unchanged from the previous month at 2.1%. The CHF/JPY pair rose from 162.512 to 164.286.The pair rebounded without continuing last month’s downward trend. As the CHF/JPY pair moved above the 20-day moving average following last weekend’s rebound, it will be worth watching whether it can maintain its momentum against the yen.

Today’s schedule includes German industrial production and Norwegian GDP at 3:00 PM, Czech industrial production at 4:00 PM, the Eurozone investor sentiment index at 5:30 PM, Singapore’s foreign exchange reserves at 6:00 PM, Mexico’s consumer price index at 9:00 PM, and U.S. Federal Reserve Governor Logan’s remarks at 10:00 PM:Remarks by Logan, President of the Dallas Fed; at 10:15 PM, remarks by Bar, Chair of the Federal Reserve; at 11:00 PM, the U.S. Employment Trends Index; at 2:30 AM, remarks by Jefferson, Member of the Federal Reserve Board; and at 5:00 AM, remarks by Mann, Member of the Bank of England’s Monetary Policy Committee. We intend to carefully assess the direction of the Swiss franc, which rose against the yen following the unchanged unemployment rate.