The USD/CHF pair is currently trading slightly above 0.7800 after experiencing a drop from the 0.7920 high reached on Thursday. Swiss Retail Sales underperformed in March, but the impact on the CHF has been minimal. The USD saw a decrease against multiple currencies on Friday, driven by reports suggesting a possible intervention in the USD/JPY pair. The US Dollar is holding steady against the Swiss Franc on Friday, fluctuating just above 0.7800, and is set to record a 0.35% decline for the week following a retreat from levels exceeding 0.7900 the day before.
The Swiss Retail Sales figures, which came in weaker than expected, have not impacted the pair. In contrast, a reported intervention by Japanese officials aimed at controlling Yen depreciation has had a universal effect on the Greenback. On Friday, the Swiss Federal Statistics Office reported a year-on-year increase of 0.5% in retail consumption for March. This figure is slightly above the 0.4% growth noted in February; however, it considerably lags behind the 1% increase projected by analysts.
Total retail sales have seen a decrease of 0.1% year-over-year. Additionally, reports indicate that Japanese authorities might have intervened by selling US Dollars to strengthen the Japanese Yen, leading to a decrease in the US Dollar’s value against its main currency counterparts on Friday. The Japanese Ministry of Finance is said to have intervened in the Forex markets on Thursday, following a warning from Finance Minister Satsuki Katayama about the necessity for prompt measures.
The USD/JPY saw a decline of about 2.4% on Thursday, leading to a decrease in the US Dollar against multiple currencies and causing a drop of over 1% in the USD/CHF. Japanese authorities are thought to have acted again on Friday, taking advantage of the reduced trading volumes due to the May 1 Labour Day holiday. The USD/JPY saw a drop of 0.8% in mere seconds during the early European session, a shift that carried considerable consequences across the market.