Markets are likely to keep a close eye on the movements of the Swiss franc, which has become the weakest currency relative to the Japanese yen.

Markets are likely to keep a close eye on the movements of the Swiss franc, which has become the weakest currency relative to the Japanese yen.

08.12.2023

In U.S. trading the previous day, the Canadian dollar fell against the yen following the BOC decision. The yen’s strengthening trend, which began in early Asian trading, continued through the end of U.S. trading hours, with the CAD/JPY pair falling by approximately 4 yen from 108.367 to 104.191.The daily decline was the largest in the past 11 months, and the pair broke well below the 200-day SMA. On the higher timeframe weekly chart, the pair rebounded and reversed before touching the 75-day MA, so we should pay close attention to price action during U.S. trading hours.

Despite the fact that the seasonally adjusted unemployment rate in Switzerland remained unchanged from the previous month’s 2.1% in the November employment statistics released yesterday, the Swiss franc became the weakest currency during U.S. trading hours. The CHF/JPY pair fell from 168.423 to 162.162.The price broke significantly below the daily 75-day moving average (MA) line and fell below the weekly 20-day MA. Although CHF/JPY hit an all-time high of 170.504 on the 16th of last month, it has already fallen by about 8 yen in just under a month.

Today’s economic indicators include Germany’s Consumer Price Index and Sweden’s Industrial Production at 4:00 PM, Hungary’s Trade Balance at 4:30 PM,Thailand’s Foreign Exchange Reserves at 16:30, Taiwan’s Trade Balance at 17:00, U.S. Employment Statistics and Canada’s Capacity Utilization Rate at 22:30, the U.S. University of Michigan Consumer Sentiment Index at 24:00, and Russia’s Consumer Price Index at 25:00. We will be closely monitoring the price movements of the Swiss franc, which has become the weakest currency in contrast to the Japanese yen.