Concerns Over Further Declines in the Weak Swiss Franc?
30.01.2025
- U.S. Existing-Home Sales Pending
- Europe: ECB Policy Rate and Statement Release
In the U.S. currency market the previous day, the U.S. dollar rose slightly against the euro after the FOMC left the policy interest rate unchanged at 4.25–4.50%.The EUR/USD pair fell from 1.0443 to 1.0382. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 20-period MA is acting as a resistance level, while on the daily chart, the 75-period MA is capping the upside.
Among European currencies, the Swiss franc fell against the yen. The CHF/JPY pair dropped from 172.302 to 170.841. It fell within the range of the +2σ to -2σ Bollinger Bands on the hourly chart.On the 4-hour chart, the candlesticks have fallen to the -3σ level of the Bollinger Bands, and on the daily chart, the pair appears poised to set a new low for the month. We will need to keep a close eye on price movements during European trading hours to see if the Swiss franc continues to weaken against the yen.
Today’s schedule includes remarks by Bank of Japan Deputy Governor Himinono at 15:10, France’s fourth-quarter GDP and consumer spending at 15:30, Germany’s import price index and Switzerland’s trade balance at 16:00,at 5:00 PM, the KOF Leading Index; at 6:00 PM, Germany’s fourth-quarter GDP; at 6:30 PM, the UK’s mortgage approvals; at 7:00 PM, the Eurozone’s fourth-quarter GDP; at 10:15 PM, the Eurozone’sECB policy rate and statement, at 22:30: U.S. initial jobless claims, at 22:45: remarks by ECB President Lagarde, and at 24:00: U.S. pending home sales. Investors should remain cautious about the downside potential of the weakening Swiss franc.
Author: Keisuke Sakurai
