USD/CHF moves sideways below 0.9100 ahead of Powell, US data
- USD/CHF is staying directionless below 0.9100 on Thursday.
- US Dollar Index remains calm around 93.00 following Wednesday's slide.
- Eyes on US GDP data and FOMC Chairman Jerome Powell's speech.
The USD/CHF pair spiked to a session high of 0.9099 during the early European session but quickly erased its gains. As of writing, the pair was virtually unchanged on a daily basis at 0.9083.
All eyes on Powell, US data
The trading action is likely to remain choppy until the key macroeconomic data releases from the US and FOMC Chairman Jerome Powell opening remarks at the Jackson Hole Symposium.
The US Bureau of Economic Analysis will release its second estimate of second-quarter GDP and the US Department of Labor will publish its weekly Initial Jobless Claims data for the week ending August 22nd.
Previewing Powell's speech, JP Morgan analysts said that they are expecting to see the introduction of average inflation targeting. Analysts further noted that the USD could come under renewed selling pressure if Powell effectively sets the stage for a roll-out of this framework at the September meeting. At the moment, the US Dollar Index (DXY) is up 0.14% on a daily basis at 93.01.
Even if the DXY turns south in the aftermath of this event, USD/CHF's losses could remain limited as a potential positive shift in market sentiment could also weigh on the CHF.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
