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 market last weekend, although the unemployment rate remained unchanged at 3.8% in the U.S. employment report, the U.S. dollar weakened toward the close as 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 pair recovered with last weekend’s rebound, it remains below the 20-day moving average on the daily chart, and the downtrend continues; therefore, we will 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 its 20-day moving average following last weekend’s rebound, it will be worth watching whether it can sustain this momentum against the yen.

Today, at 15:00, Germany’sIndustrial Production and Norway’s GDP at 15:00; the Czech Republic’s Industrial Production at 16:00; the Eurozone’s Investor Sentiment Index at 17:30; Singapore’s Foreign Exchange Reserves at 18:00; Mexico’s Consumer Price Index at 21:00; remarks by Logan,remarks by Logan, President of the Dallas Fed; at 22:15, remarks by Fed Chairman Bar; at 23:00, the U.S. Employment Trends Index; at 26:30, remarks by Fed Governor Jefferson; and at 29:00, remarks by MPC member Mann.We want to carefully assess the direction of the Swiss franc, which rose against the yen as the unemployment rate held steady.