USD/CHF extends gains after FOMC minutes, hits two-week highs

Matías Salord FXStreet

FOMC minutes show central bank slip on the decision to cut rates.
Swiss franc among worst performers on risk appetite consolidates losses against USD after minutes.

The USD/CHF pair rose broke above 0.9820 after the release of the FOMC minutes, reaching the highest level since early August. Initially, it rose but then pulled back toward 0.9800, before bouncing again to the upside. As of writing trades at daily highs at 0.9826.

FOMC minutes offers a modest boost to USD on a quiet day

The FOMC minutes showed that some members preferred a rate cut of 50bps in order to address low inflation while those who wanted a 25bps saw the move as a recalibration of the policy stance, the “mid-cycle adjustment” to face the change in the outlook. “Several” officials favored keeping rates unchanged. Jerome Powell will deliver a speech on Friday.

The greenback is trading above the level it had before the minutes. It broke to the upside after trading during hours in a tight range. The Swiss franc is among the worst performers weakened by risk appetite.

USD/CHF holds bullish bias

The pair resume the upside after making a pullback to 0.9775. It held above key short-term support and rebounded, holding in an ascendant channel. To the upside, the next resistance is seen at 0.9830 followed by 0.9855. On the flip side, the immediate support might lie at 0.9795, followed by 0.9785 (uptrend line) and 0.9740.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.