Will the market wait and see which direction the Swiss franc takes amid falling stock prices and a strong franc?
05.11.2024
- UK Non-Manufacturing PMI
- MIS/ISM Non-Manufacturing Purchasing Managers' Index
In the previous day's U.S. currency trading, the U.S. dollar was the weakest currency throughout the day, starting from the Asian session. The USD/CHF pair fell from 0.8680 to 0.8614. A downtrend has emerged along the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair has fallen to the -2σ level of the Bollinger Bands, and on the daily chart, it briefly broke below the 20-period MA support line. We will need to monitor the direction closely to see if the U.S. dollar continues to weaken against the Swiss franc.
Among European currencies, the Swiss franc emerged as the strongest currency during U.S. trading hours. The CHF/JPY pair rose from 175.298 to 176.273. 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 75-period MA is acting as a support level, and on the daily chart, the pair is beginning to resume an upward trend without falling to the 20-period MA.
Today’s schedule includes the China Caixin Non-Manufacturing PMI at 10:45, the RBA policy rate and statement at 12:30, RBA Governor Block’s press conference at 13:30, the Swiss unemployment rate at 15:45, and at 16:45, French industrial production, the French manufacturing production index, and the French budget balance.at 6:30 PM the UK Non-Manufacturing PMI, at 10:30 PM the Canadian and U.S. trade balances, at 11:45 PM the U.S. Non-Manufacturing PMI, at 12:00 AM the U.S. ISM Non-Manufacturing Index, at 3:00 AM the U.S. 10-Year Treasury Auction, and at 6:45 AM the following day the NZQ3 Unemployment Rate.We will be closely monitoring the direction of the Swiss franc, which has been rising against the yen amid falling stock prices.
Author: Keisuke Sakurai
