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Should We Be Wary of Further Upside Potential for the Swiss Franc, Which Has Been Setting New All-Time Highs Day After Day?

Market Report

Should We Be Wary of Further Upside Potential for the Swiss Franc, Which Has Been Setting New All-Time Highs Day After Day?

Today's Highlights
  1. Japan: National Consumer Price Index
  2. U.S. Consumer Price Index

In the U.S. currency market yesterday, the Canadian dollar rose against the yen after Canada’s August retail sales figures, released yesterday, improved to +1.0% from -0.8% the previous month, and the core index also improved to +0.7% from -1.2% the previous month.The CAD/JPY pair rose from 108.500 to 109.219. The rise followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, an uptrend is developing along the 10-period MA, and on the daily chart, the pair has been rising for five consecutive trading days.

Among European currencies, the Swiss franc strengthened against the yen. The CHF/JPY pair rose from 190.772 to 192.086. An uptrend was observed along the 20-period moving average on the hourly chart.On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands was confirmed, and on the daily chart, the pair has risen for eight consecutive days. However, on the monthly chart, the RSI is approaching 72 and showing signs of divergence, so caution is advised when chasing higher prices.

Today’s schedule includes the UK GfK Consumer Confidence Survey at 8:01, Japan’s National Consumer Price Index at 8:30, remarks by RBA Governor Block at 9:05, Japan’s Leading Economic Index at 14:00, UK Retail Sales at 15:00,at 3:45 PM, the French Consumer Confidence Index; at 4:15 PM, the French Manufacturing/Non-Manufacturing PMI; at 5:00 PM, the German Manufacturing/Non-Manufacturing PMI; at 5:30 PM, the UK Manufacturing/Non-Manufacturing PMI, at 21:30 the U.S. Consumer Price Index, at 21:45 remarks by German Bundesbank President Nagel, at 22:45 the U.S. Manufacturing/Non-Manufacturing PMI, and at 23:00 the U.S. University of Michigan Consumer Sentiment Index.We should keep an eye on the upside potential of the Swiss franc, which has been hitting record highs day after day.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management with a particular focus on foreign exchange markets, and he also has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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