- 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.
|Today last price||0.897|
|Today Daily Change||0.0000|
|Today Daily Change %||0.00|
|Today daily open||0.897|
|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|
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.