- US Dollar rises after FOMC statement, gains speed during Powell’s press conference.
- USD/CHF heads for the highest close since June 18.
Fed cut rates as expected, rising disagreement
The Fed cut interest rates by 25bp as widely expected to 1.75-2.00%. The decision was not unanimous. Esther George and Eric Rosengren again opposed the rate cut while James Bullard wanted a 50bp cut.
According to ING analysts, the Fed “has provided a confused message of upwardly revising its GDP forecast despite being concerned about growth while ignoring the recent pick-up in inflation completely. Moreover, there is no consensus on additional rate cuts being needed.”
Jerome Powell argued that the rate cut was due to developments and insurance against risks. He mentioned since the last meeting they have seen additional weakness abroad and an escalation in trade tensions.
After the decision, US President Trump criticized again the Fed for its policy. He twitted: “Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!” Recently Trump mentioned they should have negative rates.
USD/CHF holding above critical 0.9950
The post FOMC rally pushed USD/CHF above the key resistance 0.9950 that capped the upside in July and August. A close around current levels (0.9970) would point to a test of the parity level; above the next resistance might be seen at 1.0010.
Now, 0.9950 has become a support level. A slide below would alleviate the bullish tone and could represent another rejection from 0.9950, leaving the pair vulnerable to more losses.
|Today last price||0.9978|
|Today Daily Change||0.0047|
|Today Daily Change %||0.47|
|Today daily open||0.9931|
|Previous Daily High||0.9969|
|Previous Daily Low||0.9912|
|Previous Weekly High||0.9947|
|Previous Weekly Low||0.9854|
|Previous Monthly High||0.9976|
|Previous Monthly Low||0.9659|
|Daily Fibonacci 38.2%||0.9947|
|Daily Fibonacci 61.8%||0.9934|
|Daily Pivot Point S1||0.9906|
|Daily Pivot Point S2||0.988|
|Daily Pivot Point S3||0.9849|
|Daily Pivot Point R1||0.9963|
|Daily Pivot Point R2||0.9994|
|Daily Pivot Point R3||1.002|
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