With the Swiss franc showing signs of weakness, attention is focused on whether it will weaken further by the end of the month

With the Swiss franc showing signs of weakness, attention is focused on whether it will weaken further by the end of the month

30.08.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen despite the fact that the U.S. second-quarter GDP, measured by the core PCE deflator, fell to 2.8% from the previous reading of 2.9%. The USD/JPY pair rose from 144.225 to 145.552. The 20-period moving average on the hourly chart acted as a support level, driving the price higher.While the 4-hour chart shows a similar price movement, the 10-day moving average is acting as resistance on the daily chart, causing the price to stall.

Among European currencies, the Swiss franc was the weakest. The CHF/JPY pair fell from 172.263 to 170.746, dropping approximately 150 pips to just below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the 200-period SMA is acting as resistance, causing the price to pull back, while on the weekly chart, the price is trading below the 20-period moving average (MA) but has been forming higher lows.Additionally, the weekly RSI has fallen from above 70 to 45, indicating a buffer for a potential decline, so caution is warranted regarding price movements heading into the start of the month.

Today, New Zealand housing permits are scheduled for 7:45 a.m.,at 8:00 AM: South Korea’s Industrial Production, at 8:30 AM: Japan’s Employment Statistics, Japan’s Tokyo Consumer Price Index, and Japan’s Industrial Production, at 10:30 AM: Australia’s Retail Sales, at 3:45 PM: France’s Consumer Price Index, France’s Real GDP, and France’s Producer Price Index, at 4:00 PM: Switzerland’s KOF Leading Index, at 4:55 PM: Germany’sEmployment Statistics, 6:00 PM: Eurozone Consumer Price Index, 9:30 PM: Canada Real GDP, 9:30 PM: U.S. PCE Deflator, 10:45 PM: U.S. Chicago PMI, and 11:00 PM: U.S. University of Michigan Consumer Sentiment Index. We will be watching for any directional shifts, particularly whether the already weak Swiss franc will soften further as the month comes to a close.