Following the largest daily decline in a week the day before, the USD/CHF fell to 0.9030 in early Wednesday trading as bearish sentiment persisted for a second consecutive day. In the run-up to key catalysts, the US Dollar is weakening, which is good news for the Swiss franc (CHF) pair as it nears the 22-month low reached last week.
US Dollar Index Retreats Amid Mixed Fed Comments
After a four-day rise, the US Dollar Index (DXY) dropped to 102.15 the day before yesterday and is trading near that level at press time. As US inflation data and Fed minutes draw near, mixed comments from Fed officials have cast doubt on the hawkish stance of the US central bank.
On Tuesday, Philadelphia Fed President Patrick Harker said the Federal Reserve would keep analyzing the data carefully to determine what, if any, further steps were required.
John Williams, the president of the New York Fed, had previously said that if inflation falls, interest rates will need to be lowered. As a result of recent events in the banking sector, Chicago Fed President Austan Goolsbee has urged caution in raising interest rates.
IMF Comments and Economic Fears Impact US Dollar
The International Monetary Fund (IMF) seems to affect the value of the US dollar with its statements about economic worries and the need to fight inflation.
Reuters reports that the IMF has cautioned member countries to continue tightening monetary policy in the face of persistently high inflation but has also noted vulnerabilities in the financial system that could lead to a new crisis and hinder global growth this year.
The International Monetary Fund (IMF) has reduced its projection for global real GDP growth in 2023 from 2.9% to 2.8%. According to Reuters, the IMF expects the United States to grow by 1.6% in 2023 (up from 1.4% in January) to 1.1% in 2024.
CME’s FedWatch Tool indicated a 64% chance of a 0.25% Fed rate hike in May, down from 72.0% the day before, and the stock market ended with modest gains.
USD/CHF Outlook: Focus on CPI and FOMC Minutes
As the future progresses, USD/CHF could gain from further Dollar weakness and aim for the multi-month low. The March US CPI and the minutes from the most recent Federal Open Market Committee (FOMC) Monetary Policy Meeting could slow the rate of decline.
Technical Analysis: Key Levels to Watch
The USD/CHF pair is expected to test the low of June 2021 around 0.8925 unless it breaks above a descending resistance line that has been in place for the past five weeks and is currently located near 0.9085.
USD/CHF Slides Amid US Dollar Weakness and Mixed Fed Comments
Following the largest daily decline in a week the day before, the USD/CHF fell to 0.9030 in early Wednesday trading as bearish sentiment persisted for
Following the largest daily decline in a week the day before, the USD/CHF fell to 0.9030 in early Wednesday trading as bearish sentiment persisted for a second consecutive day. In the run-up to key catalysts, the US Dollar is weakening, which is good news for the Swiss franc (CHF) pair as it nears the 22-month low reached last week.
US Dollar Index Retreats Amid Mixed Fed Comments
After a four-day rise, the US Dollar Index (DXY) dropped to 102.15 the day before yesterday and is trading near that level at press time. As US inflation data and Fed minutes draw near, mixed comments from Fed officials have cast doubt on the hawkish stance of the US central bank.
On Tuesday, Philadelphia Fed President Patrick Harker said the Federal Reserve would keep analyzing the data carefully to determine what, if any, further steps were required.
John Williams, the president of the New York Fed, had previously said that if inflation falls, interest rates will need to be lowered. As a result of recent events in the banking sector, Chicago Fed President Austan Goolsbee has urged caution in raising interest rates.
IMF Comments and Economic Fears Impact US Dollar
The International Monetary Fund (IMF) seems to affect the value of the US dollar with its statements about economic worries and the need to fight inflation.
Reuters reports that the IMF has cautioned member countries to continue tightening monetary policy in the face of persistently high inflation but has also noted vulnerabilities in the financial system that could lead to a new crisis and hinder global growth this year.
The International Monetary Fund (IMF) has reduced its projection for global real GDP growth in 2023 from 2.9% to 2.8%. According to Reuters, the IMF expects the United States to grow by 1.6% in 2023 (up from 1.4% in January) to 1.1% in 2024.
CME’s FedWatch Tool indicated a 64% chance of a 0.25% Fed rate hike in May, down from 72.0% the day before, and the stock market ended with modest gains.
USD/CHF Outlook: Focus on CPI and FOMC Minutes
As the future progresses, USD/CHF could gain from further Dollar weakness and aim for the multi-month low. The March US CPI and the minutes from the most recent Federal Open Market Committee (FOMC) Monetary Policy Meeting could slow the rate of decline.
Technical Analysis: Key Levels to Watch
The USD/CHF pair is expected to test the low of June 2021 around 0.8925 unless it breaks above a descending resistance line that has been in place for the past five weeks and is currently located near 0.9085.
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