USD/CHF consolidates above 0.8780 awaiting US CPI and the FOMC
- The Dollar consolidate recent gains, steady above 0.8780.
- The strong NFP report has provided a fresh impulse to the USD.
- Investors looking from the sidelines ahead of US CPI and the Fed.
The Greenback is trading with a moderately bid tone during the European morning session, consolidating recent against, with downside attempts contained above last week’s peak at 0,8780.
US employment data has given a fresh boost to the Dollar
The pair keeps drawing support from the upbeat US Nonfarm Payrolls data seen on Friday, which have curbed market expectations of Fed cuts in the first quarter of Next year.
With this in mind, investors remain in a cautious mood on Monday awaiting the release of US CPI figures on Tuesday and the outcome of the Federal Reserve monetary policy meeting on Wednesday.
The Fed is widely expected to leave its benchmark rate at the current 5.5% thus the focus will be on the interest rate projections and the tone of Fed Powell’s press conference. If US inflation drops more than expected, the market will be looking for dovish hints by Powell to sell US Dollars.
The technical picture shows the Dollar in an upside correction after having depreciated 4.5% in November. The next upside targets are 0.8820 and the 50% retracement of November’s swell-off, at 0,8885.
On the downside, supports are 0.8780 and 0.8730.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
