Should we be wary of further declines in the Swiss franc following the drop in the CPI?

Should we be wary of further declines in the Swiss franc following the drop in the CPI?

05.07.2024

In the U.S. currency market the previous day, with U.S. markets closed for a holiday, the U.S. dollar became the weakest currency during U.S. trading hours. The USD/JPY pair fell from 161.673 to 160.941, dropping below the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 20-period MA is acting as resistance, while on the daily chart, the price has fallen from the +2σ Bollinger Band to just below the 10-period MA.

European currencies saw the Swiss franc weaken against the yen after yesterday’s release of Switzerland’s June Consumer Price Index (CPI), which fell 0.1 percentage points year-on-year to 1.3% from the previous month’s 1.4%. The CHF/JPY pair fell from 179.424 to 178.548, dropping to the 200-period EMA on the hourly chart.On the 4-hour chart, the upper resistance level is gradually being lowered, and on the daily chart, the RSI has begun to pull back from 84.

Today’s schedule includes the Philippine Consumer Price Index at 10:00, Singapore Retail Sales and Japan’s Economic Sentiment Index at 14:00, German Industrial Production at 15:00, French Industrial Production at 15:45, remarks by German Bundesbank President Nagel at 16:00, Eurozone Retail Sales at 18:00,at 6:40 PM, remarks by Williams, President of the New York Fed; at 9:30 PM, Canadian and U.S. employment reports; at 11:00 PM, the Canadian Ivey PMI; and at 2:15 AM, remarks by Lagarde, President of the ECB. We should watch for further downside potential in the Swiss franc, which has already fallen due to the decline in the CPI.

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