All eyes are on whether the Swiss franc, which became the weakest currency after hitting a new high, will recover
19.01.2024
- UK Retail Sales
- Germany: Producer Price Index
U.S. currencies weakened toward the end of the U.S. trading session yesterday after the U.S. December housing starts data, released yesterday, deteriorated significantly from the previous month’s 14.8% to -4.3%, and the U.S. January Philadelphia Fed Business Outlook Index, also released on the same day, worsened from the previous month’s -10.5 to -10.6.The AUD/USD pair rose from 0.6525 to 0.6574, extending its gains to just below the 75-period moving average on the hourly chart. We will closely monitor whether the Oceania currencies will continue to strengthen against the US dollar.
Among European currencies, the Swiss franc was the weakest throughout the day. The CHF/JPY pair, which had been trading at record highs, entered a corrective phase and fell more sharply than other yen crosses, dropping by approximately 1.1 yen from 171.455 to 170.311. However, it quickly rebounded during today’s Asian trading session and is currently trading firmer against the yen.Ahead of next week’s BOJ meeting, we will closely monitor whether the CHF/JPY pair resumes its upward trend.
Today’s schedule includes Japan’s Consumer Price Index at 8:30, Japan’s Tertiary Industry Activity Index at 13:30, UK Retail Sales and Germany’s Producer Price Index at 16:00, Switzerland’s Imported Producer Prices at 16:30, a speech by ECB President Lagarde at 19:00, India’s Foreign Exchange Reserves at 20:30,at 9:00 PM, Mexico’s Retail Sales; at 10:30 PM, Canada’s Retail Sales; at 12:00 AM, the U.S. University of Michigan Consumer Sentiment Index and U.S. Existing Home Sales; at 1:15 AM, remarks by the President of the Federal Reserve Bank of San Francisco; and at 3:00 AM, remarks by Federal Reserve Vice Chair Bar.We will be watching closely to see if the Swiss franc, which has become the weakest currency, will recover.
Author: Keisuke Sakurai
