With the Swiss franc facing resistance due to falling CPI, attention is turning to its downside potential

With the Swiss franc facing resistance due to falling CPI, attention is turning to its downside potential

04.11.2024

Last weekend, the U.S. dollar fell against the yen immediately following the release of the U.S. October employment report on the 1st, as nonfarm payrolls dropped sharply from 254,000 in the previous month to 12,000.The USD/JPY pair fell from 152.834 to 151.804. It subsequently recovered, eventually rising to 153.089. Since trading began with a gap down during today’s Asian session, we should remain vigilant regarding price movements during the European session.

European currencies saw the Swiss franc weaken against the yen after Switzerland’s October consumer price index, released on the 1st, showed a year-on-year decline from 0.8% in the previous month to 0.6%. The CHF/JPY pair fell from 176.625 to 175.407. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the daily chart, the price has retreated from the +2σ line of the Bollinger Bands toward the centerline, so it will be worth watching whether this price movement continues during U.S. trading hours.

Today’s schedule includes the Turkish Consumer Price Index at 4:00 PM, the Brazilian Consumer Price Index and the Hungarian Manufacturing PMI at 5:00 PM, the French Manufacturing PMI at 5:50 PM, the German Manufacturing PMI at 5:55 PM, the Eurozone Manufacturing PMI at 6:00 PM, the Eurozone Investor Sentiment Index at 6:30 PM, and at 7:00 PM, the remarks by German Bundesbank President Nagel, followed by the U.S. Manufacturing Orders Index at 12:00 AM, the U.S. 3-Year Treasury Auction at 1:00 AM, and the New Zealand RBNZ Rate Decision at 3:00 AM.Remarks by Nagel, President of the German Bundesbank, at 12:00 a.m., U.S. Manufacturing Orders at 3:00 a.m., U.S. 3-Year Treasury Auction at 3:30 a.m., and the RBNZ Financial Stability Report at 3:50 a.m. are scheduled. We will be watching for the downside potential of the Swiss franc, which has faced resistance due to falling CPI.