Attention is turning to whether the franc-yen pair can recover after falling due to a decline in industrial production

Attention is turning to whether the franc-yen pair can recover after falling due to a decline in industrial production

20.05.2024

Last weekend, the U.S. dollar weakened against the pound after the U.S. April Leading Economic Index, released on the 17th, deteriorated to -0.6% from -0.3% the previous month. The GBP/USD pair rose from 1.2645 to 1.2711, breaking above the 20-period moving average (MA) on the hourly chart from below.On the 4-hour chart, the price has rebounded with the 20-period moving average acting as support, and on the daily chart, it has risen to the +3σ level of the Bollinger Bands, so we will be watching closely to see if the upward trend continues.

European currencies saw the Swiss franc weaken against the yen following the release of Switzerland’s first-quarter industrial production data, which deteriorated from the previous reading of -0.4% to -3.1%. The CHF/JPY pair fell from 171.815 to 171.177.The price fell from the +2σ to the -2σ levels on the hourly Bollinger Bands. Since the price failed to make a new high on the 4-hour chart and has since pulled back, we should exercise caution in assessing whether prices will recover during European trading hours.

Today’s schedule includes UK Rightmove house prices at 8:01, China’s prime lending rate at 10:15, Thailand’s real GDP at 11:30, Indonesia’s current account balance at 12:00, Malaysia’s trade balance at 13:00, Japan’s tertiary industry activity index at 13:30, Taiwan’s current account balance at 17:20,at 5:30 PM Hong Kong Employment Statistics, at 6:00 PM remarks by UK BOE Deputy Governor Brovent, at 8:30 PM remarks by US Atlanta Fed President Bostic, at 10:00 PM remarks by US Fed Governor Waller, and at 11:30 PM remarks by US Fed Vice Chair Jefferson.We will be watching for a recovery in the CHF/JPY pair, which fell due to a decline in industrial production.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed