Swiss Franc Divergent Trades: USD/CHF and CHF/JPY Analysis
Swiss Franc Performance Review
There's no key headline putting a drag on the franc as this is largely a follow through from the SNB surprise decision last month here. USD/CHF in particular is finding added impetus after a strong bounce in Treasury yields overnight. It is now up 0.4% to 0.9084 at the moment.
CHF/JPY Potential Move
Another franc pair that has the potential to see a stronger move might be CHF/JPY. Although the yen itself has been weak lately, the pair is testing its lowest levels for the year still. And that is testament to how diverging fortunes between central banks can play out.
Right now, CHF/JPY is at 166.87 and is eyeing a test of its 200-day moving average of 166.50. A firm break below that will put sellers firmly in control to potentially look at a push towards the December low of 162.15 next.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.