USD/CHF sees business above parity as risk-off mood soars, SNB Jordan’s speech eyed
- USD/CHF is aiming to sustain above 1.0000 amid dismal risk tone.
- US Biden has pledged to provide advanced air systems to Ukraine to retaliate against Russian attacks.
- SNB’s Jordan will provide guidance about the likely monetary policy action.
The USD/CHF pair is playing around the magical figure of 1.0000 in the early Tokyo session amid a dismal market mood due to intensifying Russian attacks on Kyiv. Investors are channelizing their funds into the US dollar index (DXY) from the risk-sensitive currencies to play the risk-off market theme. US indices will open on Tuesday after an extended weekend and will prepare for the mega event of the US Consumer Price Index (CPI) ahead.
The mighty DXY has turned sideways around 113.20 after establishing above the 113.00 hurdle and will display movements on further developments in Russia-Ukraine tensions. In retaliation for the damage to the Crimea bridge by the Ukrainian army, Russia has intensified missile attacks at Kyiv. Reports from Reuters cited that Russia has launched its most widespread air strikes since the start of the Ukraine war, raining cruise missiles on busy cities during rush hour and knocking out power and heat.
Meanwhile, US President Joe Biden has pledged to Ukrainian President Volodymyr Zelenskyy that its economy will provide advanced air systems in response to Russia’s intensified missile attacks, as reported by Reuters.
On the Swiss franc front, investors are awaiting the speech from Swiss National bank (SNB) Chairman Thomas J. Jordan, which is due on Tuesday. SNB policymaker is expected to provide cues for the likely monetary policy action ahead. It is worth noting that the central bank announced a 75 basis point (bps) interest rate hike in September, which pushed the interest rates into positive territory to 0.5%. The SNB holds one more monetary policy for the remaining 2022, which is scheduled for December month.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
