Should We Keep a Close Eye on the Direction of the Rising Swiss Franc?
07.08.2024
- France: Current Account Balance
- Germany's Trade Balance
In U.S. currency trading the previous day, the Canadian dollar saw a back-and-forth movement against the yen. The CAD/JPY pair traded between 103.932 and 105.979. Price action saw the pair move above the 20-period moving average (MA), while its upside was capped by the 75-period MA on the hourly chart.On the 4-hour chart, the pair is trading just below the 10-period MA, and on the daily chart, the RSI stands at 11. We will be watching to see if the Canadian dollar stages a rebound during European trading hours.
Among European currencies, the Swiss franc rose slightly against the yen. The CHF/JPY pair traded between 168.564 and 171.135, fluctuating between the 20-period and 75-period moving averages on the hourly chart.On the 4-hour chart, the pair broke above the 20-period moving average—which had been acting as resistance—during today’s Asian trading session. We will be watching closely to see if the Swiss franc continues to strengthen against the yen.
Today’s economic indicators include South Korea’s current account balance at 8:00, Thailand’s consumer price index at 12:30, Japan’s economic sentiment index at 14:00, Germany’s trade balance and industrial production at 15:00, France’s current account balance and trade balance at 15:45,at 20:00, the U.S. MBA Mortgage Applications Index; at 23:00, the Canadian Ivey Purchasing Managers’ Index; at 23:30, U.S. weekly crude oil inventories; at 26:00, the U.S. 10-year Treasury auction; and at 28:00, U.S. consumer credit balances.We want to carefully assess the direction of the rising Swiss franc.
Author: Keisuke Sakurai
