Attention is turning to whether the Swiss franc can recover after falling following the SNB’s rate cut

Attention is turning to whether the Swiss franc can recover after falling following the SNB’s rate cut

21.06.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen despite the Philadelphia Fed Business Outlook Index, released yesterday, falling sharply from 4.5 the previous month to 1.3. The USD/JPY pair rose from 157.813 to 159.126, reaching its highest level since April 29.On the daily chart, the RSI has not yet reached 70, leaving room for further movement, so we should watch for potential upside in the US dollar during European trading hours.

European currencies saw the Swiss franc weaken against the yen after the Swiss National Bank (SNB) announced yesterday that it would cut its policy rate by 0.25 percentage points to 1.25%, contrary to market expectations that it would remain unchanged. The CHF/JPY pair fell from 179.060 to 177.655.It broke below the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the decline halted upon touching the 20-period MA, and on the daily chart, the pair continues to trade above the 10-period MA.

Today’s schedule includes the UK GfK Consumer Confidence Survey at 8:01, Japan’s Consumer Price Index at 8:30, India’s Manufacturing/Services PMI at 14:00, UK Retail Sales at 15:00,at 3:45 PM, the French Manufacturing/Services PMI; at 4:00 PM, remarks by Nagel, President of the German Federal Bank; at 4:30 PM, the German Manufacturing/Services PMI; at 5:00 PM, the Eurozone Manufacturing/Services PMI; at 5:30 PM, Hong Kong’s Current Account;UK Manufacturing/Services PMI at 17:30, Canada Retail Sales and Industrial Production at 21:30, US PMI at 22:45, US Leading Economic Index at 23:00, and US Existing Home Sales are scheduled. We will be watching for the Swiss franc’s ability to recover following the SNB’s rate cut.