USD/CHF on offers for third straight session, weaker below 0.96 handle

Haresh Menghani FXStreet

Having posted a session high level of 0.9620, the USD/CHF pair ran through some fresh offers and drifted into negative territory for the third consecutive session.

The pair extended last week's rejection slide from 100-day SMA hurdle near the 0.9700 handle and has now retreated further below the 0.9600 handle, closer to Friday's dismal US monthly retail sales data-led swing lows.

A mildly softer tone around the US Dollar failed to assist the pair to build on early up-move beyond the 0.9600 handle. This coupled with a modest retracement in the European equity markets further extended support to the Swiss Franc's safe-haven appeal and collaborated to the pair's slide since early European session.

The downside, however, has been limited, at least for the time being, as investors turned their focus to the much awaited FOMC policy meeting this week.

The Fed is widely expected to leave interest rates unchanged but clues over the central banks plans to begin unwinding its massive balance sheet and additional rate hike in 2017 would help investors determine the next leg of directional move for the major.

• FOMC meeting will be historic - BBH

In the meantime, broader market risk sentiment and the USD price dynamics would act as key determinants of the pair's movement ahead of the key event risk.

Technical levels to watch

Immediate support is pegged near 0.9560 area, below which the pair is likely to accelerate the fall towards the key 0.95 psychological mark en-route an important support near the 0.9445-40 region.

On the flip side, sustained momentum beyond the 0.9600 handle, leading to a subsequent strength above 0.9620 level, could lift the pair back towards downward sloping 100-day SMA hurdle near the 0.9680-85 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.