Should we keep a close eye on the movements of the Swiss franc, which has become the weakest currency in contrast to the Japanese yen?

Should we keep a close eye on the movements of the Swiss franc, which has become the weakest currency in contrast to the Japanese yen?

08.12.2023

In U.S. trading the previous day, the Canadian dollar fell against the yen following the BOC announcement. The yen’s strengthening trend, which began in early Asian trading, continued through the late U.S. trading session, and the CAD/JPY pair fell 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 course before touching the 75-day MA, so traders should pay close attention to price action during U.S. trading hours.

Among European currencies, the Swiss franc became the weakest currency during U.S. trading hours following the release of Switzerland’s November employment statistics yesterday, even though the seasonally adjusted unemployment rate remained unchanged from the previous month’s 2.1%. The CHF/JPY pair fell from 168.423 to 162.162.The price broke significantly below the 75-day moving average (MA) on the daily chart and fell below the 20-day MA on the weekly chart. Although CHF/JPY had 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 16:00, Hungary’s Trade Balance at 16:30,Thailand’s foreign exchange reserves at 17:00, Taiwan’s trade balance at 17:00, U.S. employment statistics and Canada’s capacity utilization rate at 22:30, the University of Michigan Consumer Sentiment Index at 24:00, and Russia’s Consumer Price Index at 25:00.I intend to closely monitor the price movements of the Swiss franc, which has become the weakest currency in contrast to the Japanese yen.