Should we wait and see how much further the Swiss franc will rise?
02.07.2025
- U.S. Challenger Layoff Figures
- U.S. MBA Mortgage Applications Index
In the U.S. currency market yesterday, the U.S. dollar fell against the yen despite the June U.S. PMI (Purchasing Managers' Index) released yesterday improving to 49.0 from 48.5 the previous month. The USD/JPY pair fell from 144.033 to 142.689.The pair fell as it encountered resistance at the 20-period moving average on the hourly chart. On the 4-hour chart, the candlesticks have fallen to the -3σ level of the Bollinger Bands, and on the daily chart, the price has dropped to a level that marks a new low for the month.
Among European currencies, the Swiss franc was the second-strongest after the Japanese yen. The USD/CHF pair fell from 0.7945 to 0.7873. Price action was seen fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the downward trend along the 10-period MA continued, and on the daily chart, the pair hit a new year-to-date low. We will be watching price movements during European trading hours to see if the Swiss franc can maintain its strength against the U.S. dollar.
Today’s economic indicators include Japan’s monetary base at 8:50, Australia’s housing construction permits and retail sales at 10:30, France’s budget balance at 15:45, and the Eurozone’sEmployment Report, at 19:30 UK MPC Member Taylor’s remarks, at 20:00 US MBA Mortgage Applications Index, at 20:30 US Challenger Layoffs, at 21:15 US ADP Employment Report, at 23:15 EU ECB President Lagarde’s remarks, and at 23:30 US Weekly Crude Oil Inventories.We intend to cautiously monitor the upside potential of the Swiss franc, which continues to rise.
Author: Keisuke Sakurai
