USD/CHF loses momentum above the 0.9000 area, eyes on Israel-Palestine tensions

USD/CHF struggles to gain around 0.9018 on Monday.
US Michigan Consumer Sentiment Index fell to 63.0 versus 68.1 prior, below the market estimations of 67.4.
The escalating geopolitical tensions between Israel and Palestine might boost the traditional safe-haven Swiss Franc.
Market players will monitor the US Retail Sales, and Swiss Trade Balance later this week.

Lallalit Srijandorn FXStreet

The USD/CHF pair remains under selling pressure above the 0.9000 area during the early Asian session on Monday. The downtick of the pair is bolstered by the softer US Dollar (USD) and a decline in US Treasury yield amid the rising geopolitical tensions in the Middle East. The pair currently trades near 0.9018, unchanged for the day.

On Friday, the University of Michigan (UoM) one-year Inflation expectations climbed from 3.2% to 3.8%, and five-year inflation estimates jumped from 2.8% to 3%. Additionally, the preliminary US Michigan Consumer Sentiment Index data on Friday fell to 63.0 versus 68.1 prior, below the market estimations of 67.4.

With the higher inflation expectation and the upbeat inflation data, investors anticipate a possible rate rise by the Federal Reserve (Fed) by the end of the year. The US Consumer Price Index (CPI) annually and monthly for September came in at 3.7% and 0.4%, respectively. However, the dovish comments from Fed officials might warrant bull traders on the aggressive bullish bets.

The economic data from the Swiss Federal Statistical Office on Friday reported that the nation’s Producer and Import Prices dropped 1.0% YoY in September from a 0.8% drop in the previous month. On a monthly basis, the figures declined 0.1% versus a 0.8% drop prior.

On Sunday, Israeli Prime Minister Benjamin Netanyahu vowed to "demolish Hamas" as his military got ready ground operations in Gaza to root out the militant group. Israel has been signaling that it is making preparations for ground operations in Gaza despite the escalating humanitarian crisis within the coastal Palestinian enclave. Biden has called for civilian protection, and the US has been working to alleviate food, water, and petroleum shortages. That said, the rising geopolitical tensions between Israel and Palestine might boost the traditional safe-haven Swiss Franc and act as a headwind for the USD/CHF pair.

Market players will keep an eye on the geopolitical tensions in the Middle East. The US Retail Sales for September will be released on Tuesday, with the figure expected to rise 0.2%. On Thursday, the Swiss Trade Balance for September will be due. Traders will take cues from these figures and find trading opportunities around the USD/CHF pair.

USD/CHF

Overview
Today last price	0.9018
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.9018

Trends
Daily SMA20	0.9093
Daily SMA50	0.894
Daily SMA100	0.8906
Daily SMA200	0.9022

Levels
Previous Daily High	0.9086
Previous Daily Low	0.9002
Previous Weekly High	0.9124
Previous Weekly Low	0.8987
Previous Monthly High	0.9225
Previous Monthly Low	0.8795
Daily Fibonacci 38.2%	0.9034
Daily Fibonacci 61.8%	0.9054
Daily Pivot Point S1	0.8985
Daily Pivot Point S2	0.8952
Daily Pivot Point S3	0.8901
Daily Pivot Point R1	0.9069
Daily Pivot Point R2	0.912
Daily Pivot Point R3	0.9153

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD sticks to neutral bias above 0.7100 amid cautious markets

AUD/USD holds steady above 0.7100 in the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. The PBOC status quo on Loan Prime Rates also weighs on the Aussie. However, bets on another RBA rate hike continue to underpin the Australian Dollar ahead of the Trump-Xi Summit.

USD/JPY eases below 157.00 amid looming intervention risks

USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check. A Japanese holiday also keeps traders on edge amid escalating geopolitical tensions between Russia and Ukraine and in the Middle East. As a result, the US Dollar pauses its pullback, limiting the pair's downside.

Gold remains depressed around $4,350 amid rate jitters, modest USD strength

Gold maintains its offered tone through the first half of the European session, and currently trades around $4,350, down over 0.50% for the day. The commodity, however, holds comfortably above a six-week low, touched last Wednesday as traders await further developments around the Middle East crisis and their implications for inflation. This, in turn, would influence interest rate expectations and, in turn, drive the non-yielding bullion.

Zcash holds above $1,500 amid Grayscale ETF stock split, NU7 upgrade

Zcash is trading above $1,500 after more than 40% gains last week, driven by institutional inflows and broader crypto market recovery. Grayscale’s ZEC-focused Exchange-Traded Fund (ETF) recorded $98.21 million in inflows last week, while developers focus on the NU7 upgrade to boost its private payment speed.

The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

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.