Swiss Franc is surprisingly the strongest one for the week for now, ahead of NFP. In the background, expectations for another 50bps rate hike by SNB on March 23 solidified after data earlier this week showed consumer inflation reaccelerated in February. Tightening could also continue in June if high inflation persists.
Additional boost was seen as on safe haven flow after the US stock markets tumbled overnight while risk off sentiment carried on today. Besides, steep decline in US and European benchmark treasury yields also helped.
On the other hand, Yen is pressured after BoJ left monetary policy unchanged, and indicated it’s in no rush to alter the ultra-loose stance.
CHF/JPY finally break through the medium term channel resistance with some conviction today, and hit as high as 145.69. The development affirms the case that correction from 151.43 has completed at 137.40 already after drawing support from 55 week EMA. , Larger up trend is probably ready to resume. For the near term, outlook will stay bullish as long as 144.95 support holds. Retest of 151.43 high should be seen next.
