USD/CHF seen recovering to the 0.92 area on a three-month view – Rabobank
|At the start of last week, less hawkish remarks from some Fed officials likely contributed to the push lower in USD/CHF. Economists at Rabobank analyze the pair’s outlook.
Hawkish commentary in the forthcoming Fed meeting could trigger another round of broad-based USD buying
Although the market is of the view that the Fed will keep rates higher for longer, market implied rates in the short end of the curve have softened a touch ahead of the November 1 FOMC policy announcement.
It has been our view for some time that the Fed will leave rates on hold next month. That said, we expect broadbased USD strength to prevail into next year with weaker growth in China and the prospect of recession in the Eurozone in H2 this year and possibly in the US early next year adding to the potential for a safe haven bid in the USD in early 2024.
We see USD/CHF recovering to the 0.92 area on a three-month view.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.