Will the market wait and see how much further the Swiss franc can rise?
21.05.2025
- UK Retail Price Index
- U.S. MBA Mortgage Applications Index
In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 145.496 to 144.105. It fell within the range of the hourly Bollinger Bands, from +3σ to -3σ.On the 4-hour chart, the pair is currently attempting to break below the 200 SMA support line, and on the daily chart, it has been falling for six consecutive days. We will be watching closely to see if the US dollar’s weakness continues during today’s US trading session.
Among European currencies, the Swiss franc emerged as the strongest toward the end of U.S. trading hours. The franc/yen pair rose from 173.120 to 174.421, reversing its movement from the -3σ to +2σ levels on the hourly Bollinger Bands.On the 4-hour chart, the 200 EMA is acting as support, and on the daily chart, the pair has rebounded from this month’s lows. It will be worth watching whether the Swiss franc maintains its momentum during today’s European trading session.
Today’s schedule includes Japan’s trade balance (customs-cleared basis) at 8:50, Australia’s Westpac Leading Index at 9:30, the UK’s Consumer Price Index and Retail Price Index at 15:00, South Africa’s Consumer Price Index at 17:00, the U.S. MBA Mortgage Applications Index at 20:00,South Africa’s Retail Sales at 23:30, the U.S. Weekly Crude Oil Inventories at 25:15, remarks by U.S. Richmond Fed President Barkin at 25:15, remarks by U.S. Federal Reserve Governor Bowman at 25:20, and a U.S. 20-year Treasury auction at 26:00.We intend to cautiously monitor the upside potential of the Swiss franc, which has been rising.
Author: Keisuke Sakurai
