Should we sit back and watch the Swiss franc—which has become the weakest currency but is now rebounding—to see how it recovers?

Should we sit back and watch the Swiss franc—which has become the weakest currency but is now rebounding—to see how it recovers?

03.07.2024

In yesterday’s U.S. trading session, the Canadian dollar emerged as the strongest currency. The CAD/JPY pair rose from 117.415 to 118.181. The price moved upward along the 20-period moving average on the hourly chart. On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands was observed, and on the daily chart, the RSI reached 77. We will be watching to see if today’s economic data releases during U.S. trading hours bring any changes to market sentiment.

Among European currencies, the Swiss franc was the weakest during U.S. trading hours. The CHF/JPY pair fell from 178.912 to 178.343. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price dropped to near the -2σ level of the Bollinger Bands. On the daily chart, it fell just below the 10-period MA. However, during today’s Asian trading hours, the pair rebounded again, and an upward move from the daily 10-period MA is now being observed.

Today’s schedule includes Australian housing construction permits at 10:30, China’s Caixin PMI at 10:45, India’s services PMI at 14:00, France’s budget balance at 15:45, Turkey’s consumer price index at 16:00, France’s services PMI at 16:50, Germany’s services PMI at 16:55,17:00: Eurozone Services PMI, 17:30: UK Services PMI, 18:00: Eurozone Producer Price Index, 20:00: US MBA Mortgage Applications Index, 21:15: US ADP Employment Report, 21:30: US Initial Jobless Claims, Canada: International Merchandise Trade, US: Trade Balance,U.S. Durable Goods Orders and U.S. ISM Non-Manufacturing PMI at 11:00 PM, remarks by ECB President Lagarde at 11:15 PM, and the release of the FOMC minutes at 3:00 AM. We intend to carefully assess the resilience of the Swiss franc, which, despite being the weakest currency, is showing signs of a rebound.