Should we keep a close eye on the direction of the Swiss franc, which has fallen against the yen despite the CPI remaining flat?

Should we keep a close eye on the direction of the Swiss franc, which has fallen against the yen despite the CPI remaining flat?

05.06.2024

In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the April U.S. manufacturing new orders data, released yesterday, showed a decline from 1.6% in the previous month to 0.7%. The USD/JPY pair fell by approximately 1.9 yen, from 156.482 to 154.534, marking its second consecutive day of decline.On the 4-hour chart, the pair has broken below the 20-day moving average (MA) and is extending its decline toward the 200-day moving average (SMA), while on the daily chart, it has not yet broken below the recent low. We will need to carefully assess whether the U.S. dollar will continue to weaken from here.

European currencies saw the Swiss franc weaken against the yen after Switzerland’s May Consumer Price Index (CPI), released yesterday, remained unchanged from the previous month at 1.4% year-on-year. The CHF/JPY pair fell from 174.737 to 173.201, breaking below the 75-period moving average (MA) on the hourly chart. On the 4-hour chart, it is barely holding above the 20-period MA, while on the daily chart, it continues to trade above the 10-period MA.

Today’s schedule includes South Korea’s real GDP at 8:00, Japan’s Monthly Labor Survey/Total Cash Wages at 8:30, the Philippines’ Consumer Price Index at 10:00, Australia’s real GDP at 10:30, China’s Caixin PMI at 10:45, India’s Services PMI at 14:00, France’sIndustrial Production, 4:55 PM Germany’s Services PMI, 5:00 PM Eurozone’s Services PMI, 6:00 PM Eurozone’sProducer Price Index, 9:15 PM US ADP Employment Report, 10:45 PM US PMI Purchasing Managers' Index, Canada BOC Policy Rate and Statement Release, 11:00 PM US ISM Non-Manufacturing Index, and 11:30 PM Canada BOC Governor Macklem Press Conference.The Swiss franc, which fell against the yen despite the CPI remaining flat—is this merely a corrective decline? We intend to carefully monitor the situation to determine the direction.

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