Should we keep an eye on the Swiss franc’s potential to rebound?
18.11.2024
- Switzerland: Industrial Production
- Europe: Trade Balance
Last weekend, the U.S. dollar weakened against the yen. The USD/JPY pair fell by about 3 yen, from 156.735 to 153.882. The price dropped to around the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, it fell just below the 75-period SMA, and on the daily chart, the RSI declined from 70 to 59. We will be watching price movements during U.S. trading hours to see if the dollar’s weakness continues.
The Swiss franc weakened against the yen as the Swiss October Producer Price Index (PPI), released on the 15th, deteriorated to -0.3% from -0.1% the previous month. The CHF/JPY pair fell from 175.993 to 173.617. The hourly RSI dropped from 63 to 22.On the daily chart, the pair has hit a new low for the month, and on the weekly chart, the price has fallen just below the 10-day moving average (MA), so we will be watching closely to see if a rebound occurs at the start of the week.
Today’s economic indicators include Japan’s machinery orders at 8:50, the UK’s Rightmove house prices at 9:01, Thailand’s real GDP at 11:30, Switzerland’s industrial production at 16:30, Hong Kong’s employment statistics at 17:30, the Eurozone’strade balance, 10:00 PM Philippine CPI, 10:15 PM Canadian housing starts, 10:30 PM Canadian government bond turnover, 12:00 AM US NAHB Housing Market Index, 1:30 AM US 6-month Treasury bill auction, and 3:30 AM remarks by ECB President Lagarde. We will be watching for signs of a recovery in the falling Swiss franc.
Author: Keisuke Sakurai
