Should We Keep an Eye on the Swiss Franc’s Potential for Further Gains?

Should We Keep an Eye on the Swiss Franc’s Potential for Further Gains?

16.05.2025

In the U.S. currency market yesterday, the Canadian dollar fell against the yen after Canada’s March wholesale sales, released yesterday, declined to 0.2% from 0.3% the previous month. The CAD/JPY pair fell from 104.984 to 103.948, with the price decline tracking the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair is searching for direction just below the 200-period EMA, while on the daily chart, the pullback from the 200-period SMA has been continuing for three days.

Among European currencies, the Swiss franc made significant gains against the Japanese yen during the transition from European to U.S. trading hours. The USD/CHF pair fell from 0.8419 to 0.8346.On the hourly chart, the price has moved from above the 20-period moving average to below it. On the 4-hour chart, both the lows and highs have been declining, and on the daily chart, the price has pulled back after touching the +3σ level of the Bollinger Bands. We will be watching closely to see if the Swiss franc continues to show strength during today’s U.S. trading session.

Today’s economic indicators include Japan’s preliminary real GDP at 8:50, New Zealand’s 2-year inflation expectations at 12:00, Japan’s industrial production at 13:30, the Eurozone’s trade balance at 18:00, remarks by SNB Governor Schlegel at 20:00,at 21:30, Canada’s international securities turnover, U.S. housing starts, and U.S. import price index; at 23:00, the U.S. University of Michigan Consumer Sentiment Index; and at 24:00, remarks by BOE Deputy Governor Lombardelli.We will carefully assess whether the Swiss franc, which has been strengthening, will continue to rise.