Should we keep an eye on the upside potential of the Swiss franc, now that it has become the strongest currency?
07.06.2024
- U.S. Employment Report
- Mexico Consumer Price Index
Yesterday, the three major U.S. stock indices posted mixed results, with stock prices remaining flat, interest rates falling, and crude oil prices rising. WTI crude oil rose to $75.70. Natural gas prices also rose, trading around $2.80. Of the five major precious metals, all but palladium rose; palladium was the only one to decline, falling 1.4% from the previous day to the $931 range.
In the foreign exchange market, the Swiss franc emerged as the strongest currency during U.S. trading hours. The CHF/JPY pair rose from 174.402 to 175.363. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price is trading above the 10-period MA, and on the daily chart, a band walk along the +2σ line of the Bollinger Bands has been observed. We will be watching the direction of the Swiss franc to see if prices continue to rise during European trading hours.
Today’s economic indicators include: Japan’s All-Household Household Expenditure Survey at 8:30, Thailand’s Consumer Price Index at 12:30, India’s Central Bank Policy Rate at 13:30, Japan’s Economic Sentiment Index at 14:00, Germany’s Industrial Production and Trade Balance at 15:00, France’s Trade Balance and Current Account Balance at 15:45,at 6:00 PM: Eurozone Real GDP; at 9:00 PM: Mexico Consumer Price Index; at 9:30 PM: U.S. Employment Report, Canada Employment Report, and Canada Capacity Utilization; at 11:00 PM: U.S. Wholesale Inventories; at 11:15 PM: Remarks by ECB President Lagarde; and at 1:00 AM: Remarks by Fed Governor Cook.We will be watching for further upside potential in the Swiss franc, which has become the strongest currency.
Author: Keisuke Sakurai
