USD/CHF flat-lines below the 0.9000 mark ahead of the Swiss Trade Balance, US data


  • USD/CHF remains flat around 0.8970 amid the cautious mood. 
  • The Federal Reserve (Fed) is widely expected to pause interest rates at its September meeting.
  • Swiss National Bank (SNB) is expected to raise interest rates by 25 basis points (bps) from 1.75% to 2%. 
  • Investors await the Fed and the SNB interest rate decision on Wednesday and Thursday, respectively. 

The USD/CHF pair trades sideways around 0.8970 during the early Asian trading hours on Tuesday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, faces some follow-through selling but still holds above 105.10. Markets prefer to wait on the sidelined ahead of the interest rate policy announcement from the Federal Reserve (Fed) and the Swiss National Bank (SNB) on Wednesday and Thursday, respectively. 

The Federal Reserve (Fed) is scheduled to announce the two-day monetary policy meeting on Wednesday and is widely expected to pause interest rates. The Fed is not expected to surprise the markets, with the odds of keeping rates unchanged at 99%. However, the possibility of its November meeting dropped below 30%, according to the CME Fedwatch Tool. This, in turn, could drag the US Dollar lower against its rivals and act as a headwind for the USD/CHF pair. Traders will closely monitor the press conference of Federal Reserve Chairman Jerome Powell, which might provide clues about the future path of interest rates.

On the Swiss front, the Swiss National Bank (SNB) is expected to raise additional interest rates by 25 basis points (bps) from 1.75% to 2% on Thursday. The Swiss central bank is expected to keep its restrictive stance in place to ensure price stability as the latest nation’s inflation showed a 1.6% YoY increase, which is still below the 2% target. 

Apart from this, US Secretary of State Antony Blinken met with Chinese Vice President Han Zheng on the sidelines of the United Nations General Assembly on Monday. The US State Department stated that the discussion was "a candid and constructive discussion." Traders will keep an eye on the headlines surrounding the US-China relationship. That said, the renewed trade war tension between the US and China might benefit the traditional safe-haven CHF and act as a headwind for USD/CHF.

Later in the day, the Swiss Trade Balance, the US Housing Starts, and US Building Permits will be released. Market players will closely monitor the Fed interest rate decision on Wednesday ahead of the SNB meeting on Thursday. These events could trigger the volatility in the market and give a clear direction for the USD/CHF pair.

 

USD/CHF

Overview
Today last price 0.897
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 0.897
 
Trends
Daily SMA20 0.8877
Daily SMA50 0.8778
Daily SMA100 0.888
Daily SMA200 0.904
 
Levels
Previous Daily High 0.8982
Previous Daily Low 0.8954
Previous Weekly High 0.8978
Previous Weekly Low 0.8897
Previous Monthly High 0.8876
Previous Monthly Low 0.869
Daily Fibonacci 38.2% 0.8965
Daily Fibonacci 61.8% 0.8972
Daily Pivot Point S1 0.8955
Daily Pivot Point S2 0.8941
Daily Pivot Point S3 0.8927
Daily Pivot Point R1 0.8984
Daily Pivot Point R2 0.8997
Daily Pivot Point R3 0.9012

 

 

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