With April CPI rising 0.4 percentage points, all eyes are on the strengthening Swiss franc

With April CPI rising 0.4 percentage points, all eyes are on the strengthening Swiss franc

03.05.2024

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s March international merchandise trade figures, released yesterday, deteriorated from the previous month’s CAD 1.39 billion to a deficit of CAD 2.28 billion. The CAD/JPY pair fell from 113.797 to 111.900, tracking a decline along the 10-period moving average on the hourly chart.During today’s Asian session, the pair is attempting to rebound despite very limited price movement. However, on the daily chart, the RSI has been trending downward from 83, so we should watch for the possibility of a continued decline.

European currencies saw the Swiss franc fluctuate against the yen after yesterday’s release of Switzerland’s April consumer price index, which rose to 1.4% year-on-year from 1.0% the previous month.The CHF/JPY pair fluctuated between 168.164 and 170.674, and on the 4-hour chart, it appears to be finding support below the 200-period SMA. We will need to carefully assess whether the Swiss franc will continue to rebound against the yen.

Today’s economic indicators include Singapore’s retail sales at 2:00 PM, France’s industrial production, fiscal balance, and manufacturing production index at 3:45 PM, Turkey’s consumer price index and producer price index at 4:00 PM, Hong Kong’s retail sales and the UK’s services PMI at 5:30 PM, and the Eurozone’sunemployment rate at 18:00, Brazil’s industrial production at 21:00, U.S. employment data at 21:30, U.S. services PMI at 22:45, and the U.S. ISM Non-Manufacturing PMI at 23:00. We intend to monitor the Swiss franc cautiously as it has strengthened following a 0.4-point rise in April’s CPI.