USD/CHF remains flat, right above 0.8000 after Swiss data

The US Dollar consolidates losses against the Swiss Franc, after Wednesday's reversal from 0.8075.
Swiss GDP and KOF Leading Indicator data have confirmed a significant economic slowdown.
Hopes of Fed rate cuts in September are keeping US Dollar rallies limited.

Guillermo Alcala FXStreet

The US Dollar has found some support ahead of the 0.8000 psychological level against the Swiss Franc, after its reversal from 0.8075 highs on Wednesday. The pair is looking for direction at 0.8015 at the time of writing, with the immediate bearish trend despite the weak Swiss data seen on Thursday.

Swiss GDP figures for the second quarter revealed that the economy slowed to a 1.2% annual growth rate, down from 1.8% in the previous quarter and below the expected 1.4% reading.

Beyond that, the KOF Leading Indicator, which measures the future trends of Swiss economic activity, deteriorated to 97.4 in August, from 101.3 in July, also below the market consensus of a shallower decline, to 98.0.

Hopes of Fed cuts are keeping US Dollar rallies subdued

The USD/CHF pair failed to extend gains above 0.8075 for the third time this week and retreated on Wednesday after some dovish comments by Fed Williams sent the US Dollar lower across the board.

New York Fed president, John Williams, kept hopes of a September easing alive, affirming that every Fed meeting is “live, suggesting that a rate cut next month is a credible option.

The US Dollar, however, remains moving in a range, with investors awaiting Friday’s PCE Prices Index release for more clues about the Fed’s next move. The market consensus suggests a steady inflation reading, which, if confirmed, could solidify hopes for a September cut and potentially push the US Dollar lower.

Economic Indicator

Gross Domestic Product (YoY)

The Gross Domestic Product (GDP), released by the Swiss State Secretariat for Economic Affairs (SECO) on a quarterly basis, is a measure of the total value of all goods and services produced in Switzerland during a given period. The GDP is considered as the main measure of Swiss economic activity. The YoY reading compares economic activity in the reference quarter compared with the same quarter a year earlier. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.

Economic Indicator

KOF Leading Indicator

The KOF Swiss Leading Indicator is released by the Konjunkturforschungsstelle Swiss Institute for Business Cycle Research and it's a joint survey with leading indicator which measures future trends of the overall economic activity. It captures the movement of GDP growth and the economic trend in Switzerland. An optimistic view is considered as bullish for the CHF, whereas a pessimistic view is considered as bearish.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The 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. Governor Kazuo Ueda said the policy phase had changed.

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.