HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

USD/CHF turns sideways after Fed-inspired volatility, focus shifts to US NFP


1 December 2022

USD/CHF is displaying back-and-forth moves around 0.9450 after sheer volatility. A slowdown in growth rate and labor demand, and a decline in October inflation support Fed’s less-hawkish commentary. The US NFP is expected to display weak job numbers considering cues from US ADP Employment. The USD/CHF pair turned sideways around 0.9450 in the early Asian session. Federal Reserve (Fed)-inspired massacre in the asset was followed by a casual recovery from around 0.9430 and the asset has turned sideways now to ease sky-rocketing volatility. The risk appetite is extremely solid as the commentary from Fed chair Jerome Powell has confirmed that policymakers will consider a lower rate hike for December monetary policy meeting. The less-hawkish commentary from the Fed chair sent the US Dollar Index (DXY) on a downside swing to near 105.80. The USD Index has also shown a mild recovery to near 106.00, however, the downside bias has been cemented. A stellar run in S&P500 portrays a cheerful market mood.

Meanwhile, the US Treasury yields have witnessed a bloodbath as investors poured liquidity into US Treasury bonds. The 10-year US Treasury yields have dropped to 3.60%.

The decision of slowing down the current pace of the interest rate hike by the Fed is backed by a deceleration in the employment generation process, a slowdown in growth rate, and a surprise decline in October’s inflation, which have put the Fed in a position where rate hike pace could be eased. The foremost agenda of the Fed is to bring price stability but it is not appropriate to ‘Crash the economy and clean it afterward, cited by Fed Chair.

For further guidance, investors are shifting their focus toward the United States Nonfarm Payrolls (NFP) data, which will release on Friday. The official employment report is expected to display a weaker number considering cues from US Automatic Data Processing (ADP) Employment data, which has shown fresh addition of 127K jobs in November. On the Swiss franc front, investors are keeping an eye on Consumer Price Index (CPI) data. The monthly annual CPI figures are seen unchanged at 0.1% and 3.0% respectively. The Swiss National Bank (SNB) Chairman Thomas J. Jordan is still in favor of an expansionary policy to keep up the economic prospects.

#source

Share: Tweet this or Share on Facebook


Related

Yen sinks to intervention "danger zone"
Yen sinks to intervention "danger zone"

Swiss franc loses ground too, dollar rebounds after solid US data. Gold steady near record highs, chipmakers weigh on stock markets.

27 Mar 2024

USD/CHF Edges Upwards, Approaching 0.8500 as Focus Shifts to US Labor Data and Swiss Economic Indicators
USD/CHF Edges Upwards, Approaching 0.8500 as Focus Shifts to US Labor Data and Swiss Economic Indicators

The USD/CHF currency pair is experiencing a gradual uptick, trading near the 0.8500 level, bolstered by a strengthening US Dollar. This ascent reflects the market's response...

5 Jan 2024

USD/CHF Faces Downward Pressure Amid Dovish Federal Reserve Expectations
USD/CHF Faces Downward Pressure Amid Dovish Federal Reserve Expectations

The USD/CHF pair has continued its downward trend, inching closer to the 0.8400 level with a 0.40% loss. This movement is primarily driven by market expectations of a dovish shift in the Federal Reserve...

1 Jan 2024

USDCHF Wave Analysis: Navigating the Downward Momentum Post Key Support Break
USDCHF Wave Analysis: Navigating the Downward Momentum Post Key Support Break

USDCHF Experiences a Notable Break Below Critical Support, Indicating a Bearish Trend. The USDCHF currency pair, an important barometer in the forex market, has recently undergone...

29 Dec 2023

Analyzing the USDCHF Correction: Key Levels and Potential Rebound
Analyzing the USDCHF Correction: Key Levels and Potential Rebound

The USDCHF currency pair experienced a notable correction following its descent to a four-month low of 0.8630. Despite the downward trajectory...

15 Dec 2023

USD/CHF Struggles to Gain Ground Amid Speculations of Early Fed Rate Cuts and Swiss CPI Data
USD/CHF Struggles to Gain Ground Amid Speculations of Early Fed Rate Cuts and Swiss CPI Data

The U.S. Dollar (USD) continues to display a bearish trend against the Swiss Franc (CHF), with any attempts at recovery being firmly capped below the 0.8760 mark. This ongoing weakness in the USD has led the USD/CHF...

4 Dec 2023


MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.