Swiss Franc and Japanese Yen Strength Amid Market Volatility

By Tomasz Wisniewski|

Published: June 04 2024, 05:51 GMT+0

Swiss Franc and Japanese Yen Strength Amid Market Volatility

Good morning and welcome to Tuesday. Let’s dive into the notable market events from Monday and what to expect today. Yesterday, we saw some excitement in the equity markets with a significant glitch on the NYSE affecting various stocks, most notably Berkshire Hathaway, which briefly plummeted before trading was halted and corrected. Additionally, GameStop, a popular meme stock, surged 21% and is set to open higher today.

Turning to the macroeconomic calendar, Monday’s data included a lower-than-expected ISM Manufacturing PMI at 48.7, while the final Manufacturing PMI surprised to the upside at 51.3. Today, investors are focused on Swiss inflation data, expected at 0.3%, and the JOLTS job openings, forecasted at 8.37 million. These figures could drive significant moves in the currency markets.

On the currency front, we saw strength in the Swiss franc and Japanese yen, while the U.S. and Canadian dollars weakened. As we approach the opening of the European session, the Swiss franc remains strong, likely due to anticipation of higher Swiss inflation.

In the commodities sector, there were notable movements as well. Precious metals, including silver, gold, palladium, and platinum, are on the rise, reflecting a shift towards safe havens. Conversely, oil prices hit new mid-term lows, indicating a divergence from the bullish trend in precious metals. This divergence is partly due to a weaker dollar, which usually supports oil prices but is currently aligned with the decline.

Indices showed mixed results; despite the reversal on Friday, Monday’s session ended flat, indicating uncertainty among investors. Futures are currently flashing green, suggesting a potential continuation of the positive sentiment, but the market remains cautious.