- USD/CHF breaks consolidation range ahead of FOMC meeting.
- Investors' focus shifts to upcoming Fed meeting, 25 bps rate hike or pause?
- SNB policy decision looms next after the Fed event.
USD/CHF has broken the four-day consolidation range and remains steady, just above the 0.9200 key psychological mark. The broad-based US Dollar weakness emerged after a positive risk appetite spurred by US authorities intervening to rescue the US banking system. US Treasury Secretary, Janet Yellen, expressed willingness on Tuesday to provide deposit guarantees to all small banks.
Considering the ongoing liquidity crunch in the banking sector, the US Treasury Department, Federal Reserve (Fed), and US regulators have prioritized addressing the issue. Despite opposition from US senators, various liquidity options have already been proposed, such as the Fed opening swap lines, the discount window, and bank deposit guarantees for small banks. These easing measures will likely exert further downward pressure on the US Dollar.
Investors' focus has shifted to the upcoming Fed meeting, with markets pricing in an 85% chance of a 25-basis-point rate hike when the Fed announces its monetary policy decision on Wednesday.
Amid this banking crisis, investors are skeptical about the upcoming Fed meeting, with differing views. Following a synchronized global effort to calm the banking turmoil, the market has begun to lean toward a consensus view of a 25 basis point (bps) rate hike. Given that a summary of economic projections was conducted before this banking turmoil, attention will be focused on the dot plot and initial remarks from Fed Chair Powell.
Fed Chair Powell's press conference will be essential to watch as investors try to gauge the banking and inflationary outlooks.
After the Fed, the Swiss National Bank (SNB) is next in line to deliver its policy decision.
Levels to watch
|Today last price||0.9223|
|Today Daily Change||-0.0001|
|Today Daily Change %||-0.01|
|Today daily open||0.9224|
|Previous Daily High||0.9317|
|Previous Daily Low||0.921|
|Previous Weekly High||0.9342|
|Previous Weekly Low||0.9072|
|Previous Monthly High||0.9429|
|Previous Monthly Low||0.9059|
|Daily Fibonacci 38.2%||0.9251|
|Daily Fibonacci 61.8%||0.9276|
|Daily Pivot Point S1||0.9183|
|Daily Pivot Point S2||0.9148|
|Daily Pivot Point S3||0.9076|
|Daily Pivot Point R1||0.9291|
|Daily Pivot Point R2||0.9358|
|Daily Pivot Point R3||0.9398|
Follow us on Telegram
Stay updated of all the news
EUR/USD remains depressed near 1.0700 ahead of Lagarde, US data
EUR/USD is trading close to 1.0700, on the defensive in the European session. The US Dollar is extending post-US NFP gains amid cautious optimism, as investors assess the Fed rates outlook. Eurozone Sentix data slumps to -17.1 in June. Lagarde, US data awaited.
GBP/USD drops below 1.2400 amid firmer US Dollar
GBP/USD is falling below 1.2400 amid a notable US Dollar demand, dragging the major lower for the second successive day on Monday. Markets repricing of the Fed interest rates outlook push the US Treasury bond yields higher, in turn, the US Dollar. US ISM Services PMI next of note.
Gold finds short-term cushion above $1,940, more downside looks solid
Gold price has found a short-term cushion near $1,943.00, however, more downside seems favored. Gold price witnessed an intense sell-off after a mean-reversion move to near the 200-period EMA at $1,977.32.
Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September
Ripple has a 25% chance of winning its legal battle against the US SEC, according to pro-XRP attorney John Deaton. Over the weekend, Deaton shared his opinion on Ripple’s likelihood of both an outright win and a partial victory.
Services PMIs the next focus after last week’s bumper US jobs report
While US markets finished the week on a high, after another bumper jobs report and a positive week across the board, markets in Europe, while finishing the week on a high, struggled to match the exuberance of investors on the other side of the Atlantic.