Should We Keep an Eye on the Upside Potential of the Franc-Yen Pair Despite Weakening PPI?

Should We Keep an Eye on the Upside Potential of the Franc-Yen Pair Despite Weakening PPI?

14.06.2024

In the U.S. currency market yesterday, the U.S. dollar rose against the euro after the U.S. Producer Price Index (PPI) for May, released yesterday, remained unchanged from the previous month at 2.2% year-on-year.The EUR/USD pair fell from 1.0816 to 1.0727. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the decline occurred from a pattern where short- and long-term MAs were clustered closely together. On the daily chart, the price is currently below the 200-period simple moving average (SMA), so we will be watching for the potential for the U.S. dollar to rise during European trading hours.

Despite the fact that Switzerland’s May Producer Price Index (PPI), released yesterday, deteriorated from 0.6% the previous month to -0.3%, the Swiss franc rose slightly against the yen. The CHF/JPY pair rose from 174.978 to 175.751.The rise was supported by the 75-period moving average (MA) on the hourly chart. Furthermore, during today’s Asian trading session, the pair extended its gains, rising to 176.906, so we will be watching closely to see if the Swiss franc continues to rise during U.S. trading hours.

Today’s schedule includes: Japan’s Tertiary Industry Activity Index at 1:30 PM, Japan’s Industrial Production at 1:30 PM, Sweden’s Consumer Price Index at 3:00 PM, India’s Wholesale Price Index at 3:30 PM, a press conference by Bank of Japan Governor Ueda at 3:30 PM, France’s Consumer Price Index at 3:45 PM, Hong Kong’s Producer Price Index at 5:30 PM, and the Eurozone’sTrade Balance at 17:30, Canada’s Manufacturing Sales and U.S. Import Price Index at 21:30, remarks by U.S. Federal Reserve Bank of Cleveland President Mester at 21:30, U.S. University of Michigan Consumer Sentiment Index at 23:00, Russia’s Real GDP at 25:00, and remarks by European Central Bank President Lagarde at 26:30. We will cautiously monitor the upside potential for the CHF/JPY pair, which rose despite the deterioration in the PPI.