With the Swiss franc rising on the back of a strong manufacturing PMI, attention is turning to its upside potential

With the Swiss franc rising on the back of a strong manufacturing PMI, attention is turning to its upside potential

04.06.2024

In the U.S. currency market yesterday, the U.S. dollar became the weakest currency during U.S. trading hours after the U.S. ISM Manufacturing Index for May, released yesterday, fell to 48.7 from 49.2 the previous month.The EUR/USD pair rose from 1.0827 to 1.0909. A band walk along the +2σ line of the hourly Bollinger Bands was observed. Since prices have similarly extended to the +2σ line on the 4-hour chart, we should watch for the potential for the US dollar to decline during European trading hours.

European currencies saw the Swiss franc emerge as the strongest currency during U.S. trading hours after Switzerland’s May manufacturing PMI, released yesterday, rose sharply to 46.4 from 41.4 the previous month. The USD/CHF pair fell from 0.9035 to 0.8947.The price fell from above the 20-period moving average (MA) on the hourly chart to below it. On the 4-hour chart, the RSI has dropped to 23.5, indicating oversold conditions, and on the daily chart, the price has fallen just below the 200-period EMA, so we should watch for a correction in the Swiss franc during European trading hours.

Today’s economic indicators include South Korea’s Consumer Price Index at 8:00, the UK’s BRC Retail Sales at 8:01, Japan’s Monetary Base at 8:50, Malaysia’s Manufacturing PMI at 9:30, Australia’s Q1 Current Account Balance at 10:30, Switzerland’s Consumer Price Index at 15:30, France’s Budget Balance at 15:45,at 4:55 PM: German Employment Statistics; at 6:30 PM: South African Real GDP; at 9:00 PM: Brazilian Real GDP; and at 11:00 PM: U.S. JOLTS Job Openings, U.S. Manufacturing New Orders, and U.S. Durable Goods Orders. We will be watching for further upside potential in the Swiss franc, which has risen on the back of strong Manufacturing PMI data.

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