Should investors be wary of downside potential for the Swiss franc, which has faced resistance at the PPI?
15.10.2024
- Japan: Industrial Production
- Canada: Consumer Price Index
In yesterday's U.S. currency trading, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 108.205 to 108.721. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price has rebounded from the 75-period MA, and on the daily chart, it is finding support at the 10-period MA. We will need to watch price movements during European trading hours to see if the Canadian dollar continues to rise against the yen.
European currencies saw the Swiss franc weaken against the yen yesterday following the release of Switzerland’s September Producer Price Index (PPI), which fell to -0.1% from 0.2% the previous month. The CHF/JPY pair dropped from 174.075 to 173.420. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the RSI has fallen from 62 to 49, and on the daily chart, the pair is currently undergoing a corrective decline within an uptrend.
Today, at 1:30 PM, Japan’s Industrial Production; at 3:00 PM, Sweden’s Consumer Price Index and the UK’s Employment Statistics; at 3:45 PM, France’s Consumer Price Index; at 6:00 PM, Germany’s ZEW Economic Sentiment Index and the Eurozone’s ZEW Economic Sentiment Index; at 6:30 PM, South Africa’s SACCI Economic Sentiment Index;at 9:30 PM, Canada’s Consumer Price Index, the U.S. New York Fed Manufacturing Index, and Canada’s Wholesale Sales; at 12:30 AM, remarks by the President of the San Francisco Fed; and at 2:00 AM, remarks by Fed Governor Kugler. We should remain highly vigilant regarding the downside potential for the Swiss franc, which has faced resistance on the upside due to PPI data.
Author: Keisuke Sakurai
