All eyes are on whether the Swiss franc—which became the weakest currency after hitting a new high—will recover.

All eyes are on whether the Swiss franc—which became the weakest currency after hitting a new high—will recover.

19.01.2024

In the U.S. currency market the previous day, the dollar weakened toward the end of the U.S. trading session as the U.S. December housing starts—released yesterday—deteriorated significantly from the previous month’s 14.8% to a decline of 4.3%, and theJanuary Philadelphia Fed Business Outlook Index, released on the same day, also deteriorated from -10.5 the previous month to -10.6, causing the U.S. dollar to weaken toward the end of U.S. trading hours.The AUD/USD pair rose from 0.6525 to 0.6574, reaching just below the 75-period moving average on the hourly chart. We will carefully monitor whether Oceania currencies will continue to strengthen against the U.S. dollar.

Among European currencies, the Swiss franc was the weakest throughout the day. The CHF/JPY pair, which had been trading at record highs, underwent a corrective move and fell differently from other yen crosses, dropping by about 1.1 yen from 171.455 to 170.311.However, during today’s Asian trading session, the pair immediately rebounded and is currently trading firmer against the yen. Ahead of next week’s BOJ meeting, we will be closely monitoring whether the CHF/JPY pair will resume 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, and the Eurozone’sremarks by ECB President Lagarde, at 20:30 India’s foreign exchange reserves, at 21:00 Mexico’s retail sales, at 22:30 Canada’s retail sales,at 24:00: U.S. University of Michigan Consumer Sentiment Index and U.S. Existing Home Sales; at 25:15: U.S. Daily: Remarks by the President of the Federal Reserve Bank of San Francisco; and at 27:00: Remarks by U.S. Federal Reserve Vice Chair Bar.We’ll be watching to see if the Swiss franc, which has become the weakest currency, will recover.