Should we keep an eye on the upside potential of the Swiss franc, which is rebounding?
22.08.2024
- European Manufacturing/Services PMI
- U.S. PMI (Purchasing Managers' Index)
In the U.S. currency market yesterday, the U.S. dollar fell against the yen after the MBA Mortgage Applications Index, released yesterday, dropped to -10.1% from the previous reading of 16.8%. The USD/JPY pair fell from 146.235 to 144.458. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 20-period MA is acting as a resistance level, and a similar pattern is observed on the daily chart.
Among European currencies, the Swiss franc, which had been weakening, rebounded. The CHF/JPY pair rose from 169.714 to 170.910, breaking above the resistance line formed by the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, the pair has risen from the -3σ to the +2σ Bollinger Bands, and on the daily chart, it appears poised to break above the 200-day SMA resistance line. We will be watching to see if the Swiss franc continues to strengthen against the yen during European trading hours.
Today’s schedule includes Japan’s Foreign and Domestic Securities Investment at 8:50, Indonesia’s Current Account Balance at 12:00, Malaysia’s Consumer Price Index at 13:00, India’s Manufacturing PMI at 14:00, Norway’s Real GDP at 15:00, Turkey’s Consumer Confidence Index at 16:00, and France’sManufacturing/Services PMI, at 4:30 PM Germany’s Manufacturing/Services PMI, at 5:00 PM the Eurozone’s Manufacturing/Services PMI, at 5:30 PM the UK’s Manufacturing/Services PMI, at 9:30 PM U.S. Initial Jobless Claims, at 10:45 PM the U.S. PMI Purchasing Managers’ Index, and at 11:00 PM U.S. Existing Home Sales.We will be watching for upside potential in the Swiss franc, which is rebounding.
Author: Keisuke Sakurai
