Will the market wait and see how long the Swiss franc's rise lasts?

Will the market wait and see if the Swiss franc’s rise continues?

05.02.2025

In yesterday's U.S. currency markets, the U.S. dollar weakened against the euro. The euro rose against the dollar for the second consecutive day, climbing from 1.0272 to 1.0386. On the 4-hour chart, the pair has broken above the 200-day moving average (SMA) line, which had been acting as resistance, and on the daily chart, the upward trend continues after avoiding a new low from last month. We will be watching to see if the U.S. dollar continues to weaken.

Among European currencies, the Swiss franc rose slightly against the yen. The CHF/JPY pair rose from 169.668 to 171.024. A trend along the 20-period moving average (MA) on the hourly chart was observed.On the 4-hour chart, the candlesticks have extended to the 75-period moving average (MA) resistance line, while the daily chart showed a regression toward the 20-period MA centerline. However, as the Swiss franc has weakened during today’s Asian session, we should pay close attention to the direction of the market during European trading hours.

Today’s schedule includes New Zealand’s employment report at 6:45, South Korea’s Consumer Price Index at 8:00, Japan’s Monthly Labor Survey at 8:30, the Philippines’ Consumer Price Index at 10:00, China’s Caixin PMI at 10:45, Indonesia’s retail sales at 13:00, India’s Services PMI at 14:00, and France’sIndustrial Production, 5:50 PM: France Non-Manufacturing PMI, 5:55 PM: Germany Non-Manufacturing PMI, 6:00 PM: Eurozone Non-Manufacturing PMI, 6:30 PM: UK Non-Manufacturing PMI, 7:00 PM: EurozoneProducer Price Index, 21:00 US MBA Mortgage Applications, Brazil Industrial Production, 22:15 US ADP Employment Report, 22:30 US Trade Balance, Canada International Merchandise Trade, 23:45 US PMI Purchasing Managers' Index, 24:00 US ISM Non-Manufacturing Index, and 24:30 US Weekly Crude Oil Inventories.We will carefully monitor the sustainability of the Swiss franc’s rise.