USD/CHF: Fundamental outlook points to a weaker Swiss franc – Goldman Sachs

Dhwani Mehta FXStreet

In the view of the analysts at Goldman Sachs, the Swiss franc is likely to weaken in the coming months.

Key quotes

“SNB sight deposits have picked up slightly in recent weeks, but we do not yet see clear evidence that the central bank has stepped in to curb CHF strength.”

“We still think the fundamental outlook points to a weaker Franc ahead, but it will take some stabilization in the global growth outlook for this trend to resume.”

USD/CHF remains below 0.9150 as US Treasury yields rebound

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD meets fresh supply and tests 0.7100 amid weak Australian PMIs

AUD/USD has come under fresh selling pressure and is testing 0.7100 in the Asian session on Wednesday. Australia's flash PMIs showed manufacturing slipped into contraction and services expanding slowly for a second straight month, renewing the pair's downside. Furthermore, a bullish US Dollar acts as a headwind for the pair as traders keenly await the crucial Trump-Xi summit on Thursday. Meanwhile, markets shrug off US-Iran indirect talks.

USD/JPY stands firm near mid-157.00s, close to two-week high

USD/JPY hovers around mid-157.00s in the Asian session on Wednesday, near two-week highs touched last Friday as the BoJ's dovish rate hike continues to undermine the Japanese Yen. Meanwhile, the US Dollar remains firm amid the Fed's hawkish stance, adding support to the pair, though JPY intervention fears cap further gains. Markets pay little heed to the completion of the round of US-Iran indirect talks ahead of Trump-Xi meeting.

Gold falls as Fed rate hike bets lift US Dollar to two-month high

Gold trades on the back foot on Wednesday as expectations of further Federal Reserve interest rate hikes lift the US Dollar and weigh on the non-yielding metal. At the time of writing, XAU/USD trades around $4,315, down 1.0% on the day.

Crypto Today: Bitcoin and Ethereum consolidate gains as XRP extends breakout

Bitcoin (BTC) is moderating on Wednesday, trading near $86,000 as the crypto market broadly consolidates. Ethereum (ETH) mirrors BTC’s stable outlook, holding above $2,700. Ripple (XRP), meanwhile, edges higher for the sixth consecutive day, currently sitting above $1.61 as bulls tighten their grip.

S&P Global PMIs expected to show resilient US economic growth in September

S&P Global will release on Wednesday its preliminary September Purchasing Managers' Indices (PMIs) for the United States, based on surveys of top private sector executives, to provide an early indication of economic momentum. The data is expected to highlight US economic resilience.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.