Should we be wary of further downside potential for the falling Swiss franc?
21.03.2025
- UK GfK Consumer Confidence Index
- Williams (U.S.): Remarks by the President of the New York Fed
In yesterday's U.S. currency trading, the Canadian dollar fell against the yen after Canada's February industrial production figures, released yesterday, showed a decline from 1.6% the previous month to 0.4%. The CAD/JPY pair fell from 103.949 to 103.152.The price fell to the 200-period SMA on the hourly chart. On the 4-hour chart, a pullback from the 200-period EMA has occurred, and on the daily chart, the RSI is trending downward just below the 50 level.
Among European currencies, the Swiss franc fell against the U.S. dollar. The USD/CHF pair rose from 0.8756 to 0.8841, surging to the +2σ level of the hourly Bollinger Bands. On the 4-hour chart, the price has recovered to the 75-MA line, while on the daily chart, the 200-SMA is acting as a support level. We will need to monitor price movements during U.S. trading hours to see if the Swiss franc continues to weaken.
Today’s economic indicators include New Zealand’s trade balance at 6:45, Japan’s national consumer price index at 8:30, Japan’s foreign and domestic securities investment at 8:50, the UK’s GfK consumer confidence index at 9:01, the Eurozone’s current account balance at 18:00,8:00 PM UK CBI Business Survey, 9:30 PM Canada Retail Sales, 10:05 PM US Remarks by Williams, President of the New York Fed, and 12:00 AM Eurozone Consumer Confidence Index. Keep an eye on the downside potential of the falling Swiss franc.
Author: Keisuke Sakurai
