USD/CHF remains stable near 0.9200 level, as market eagerly awaits Fed's crucial decision


  • 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

USD/CHF

Overview
Today last price 0.9223
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.9224
 
Trends
Daily SMA20 0.9319
Daily SMA50 0.926
Daily SMA100 0.9352
Daily SMA200 0.954
 
Levels
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

 

 

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