Should We Wait and See How the Swiss Franc Performs, Given Its Limited Upside?
27.02.2025
- U.S. Existing-Home Sales
- European Consumer Confidence Index
In the U.S. currency market yesterday, the U.S. dollar traded in a seesaw pattern against the yen. The USD/JPY pair fluctuated between 148.630 and 149.878, with price action straddling the 20-period moving average on the hourly chart.On the 4-hour chart, the pair rebounded from the -2σ level of the Bollinger Bands, and the daily chart is showing a similar price pattern to the 4-hour chart. We will need to keep an eye on economic data releases and comments from key officials to see if any distinctive price movements emerge during U.S. trading hours.
Among European currencies, the Swiss franc fell against the yen. The CHF/JPY pair traded between 167.395 and 166.338. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, price action appears to be searching for direction just below the 20-period moving average (MA), while on the daily chart, the downtrend continues as prices face resistance at the 10-period MA. We will be watching closely to see if the Swiss franc continues to weaken during European trading hours.
Today, at 9:00, New Zealand’s ANZ Business Confidence Index; at 16:00, Turkey’s trade balance; at 16:45, France’s Producer Price Index; at 17:00, Switzerland’s real GDP;6:00 p.m. for the Eurozone Money Supply, 6:30 p.m. for South Africa’s Producer Price Index, 7:00 p.m. for the Eurozone Consumer Confidence Index and Eurozone Economic Sentiment Index, 9:00 p.m. for Mexico’s Trade Balance,Brazil’s employment report at 10:30 p.m., U.S. initial jobless claims, Canada’s current account balance, U.S. real GDP, and U.S. durable goods orders at 10:30 p.m., and remarks by Fed Vice Chair Bar and U.S. existing home sales at midnight.We will closely monitor the Swiss franc, whose upside appears limited.
Author: Keisuke Sakurai
