- USD/CHF looks for direction near a three-month low.
- Fed-led USD weakness joined risk-off to drag the pair to multi-month bottom.
- SNB is likely to stand pat, Jordan’s press conference is the key to follow.
USD/CHF stays modestly changed around 0.9825 during early Thursday. The pair recently benefited from the broad US dollar (USD) weakness and market’s risk aversion wave. However, nearness to the Swiss National Bank (SNB) monetary policy keeps traders on the cautious front.
Doubts surrounding the phase-one and the United States (US) tariffs on China, up for December 15, have joined the cautious sentiment ahead of the United Kingdom’s (UK) election to weigh on the market’s risk tone. The US 10-year treasury yields and the S&P 500 Futures are portraying the risk-off.
The US Federal Reserve (Fed) previously dominated market moves despite announcing no change to monetary policy. The reason is the Fed Chairman Jerome Powell’s cautious statement concerning the future of anticipated rate hikes.
While the SNB is also likely to follow the footsteps of the Fed, with the key interest rate being -0.75%, the press conference of Chairman Thomas Jordan and the quarterly economic forecast will be the key to watch. SNB’s Jordan previously said the central bank stands ready to intervene.
Other than the SNB, Swiss Producer and Import Prices will also entertain momentum traders. The figures are likely to recover to 0.1% and -2.2% on MoM and YoY from -0.2% and -2.4% respective priors.
Technical Analysis
September month low near 0.9800 is all in the Bear’s radar whereas buyers are less likely to enter unless breaking 0.9870 on a daily closing basis.
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