- USD/CHF receives downward pressure as the Fed is expected to reduce 85 bps rate cuts in 2024.
- US Dollar trades with a negative sentiment as risk-on sentiment improves.
- Traders await Swiss ZEW Survey Expectations to gain further insights into business conditions in Switzerland.
USD/CHF trades above the 0.8800 psychological level during the Asian session on Tuesday, rebounding from the three-month low at 0.8793. The USD/CHF pair struggles to halt the losses due to the weaker US Dollar (USD) following the likelihood of the US Federal Reserve (Fed) to conclude its monetary rate hike cycle. Additionally, investors price in nearly 85 basis points of interest rate cuts by the Fed in the next year.
US Dollar Index (DXY) hovers around 103.20 at the time of writing, with a negative bias as the risk-on sentiment is reinforced by the latest report from the US Census Bureau, showing a notable 5.6% drop in New Home Sales for October at 679,000, as compared to the market expectation of 725,000. The prevailing trend continues to lean towards the downside, fueled by a dip in US Treasury yields.
On Tuesday, the United States (US) will release the Housing Price Index and CB Consumer Confidence, along with insights from Federal Reserve (Fed) officials, providing a comprehensive look at the economic landscape.
The upcoming Swiss ZEW Survey – Expectations on Wednesday holds particular significance as it kicks off the week's notable data releases. The last reported reading in October stood at -37.8, indicating a prevailing pessimism among businesses regarding the Swiss economy.
Moreover, Swiss Real Retail Sales for October is scheduled to be released on Thursday, expecting to see an improvement of 0.2% from the previous 0.6% decline. On Friday, the Gross Domestic Product for the third quarter will be eyed.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.1000 after EU data
EUR/USD fluctuates in a tight range below 1.1000 in the European session on Monday. The data from the Eurozone showed that Retail Sales rose by 0.2% on a monthly basis in August as forecast, failing to boost the Euro. Investors await comments from Fed officials.
GBP/USD struggles near 1.3100, Fedspeak awaited
GBP/USD is struggling near 1.3100 in European trading on Monday, erasing early gains. The pair is undermined by a negative shift in risk sentiment but the downside appears capped amid the US Dollar retreat ahead of speeches from several Fed policymakers.
Gold price keeps the red below $2,650, remains confined in a familiar trading range
Gold price remains on the defensive amid reduced bets for a 50 bps Fed rate cut in November. The USD consolidates last week’s strong gains and exerts some pressure on the XAU/USD. Geopolitical risks might continue to act as a tailwind and limit losses for the precious metal.
Is Dogecoin ready for a rally?
Dogecoin price extends gains on Monday after retesting its support level last week. This rise is supported by DOGE’s daily active addresses, an on-chain metric that has spiked to the highest level since early April.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.