USD/CHF: SNB in focus tomorrow – OCBC

FXStreet Insights Team FXStreet

USD/CHF fell amid broad USD softness. Pair was last at 0.8479 levels, OCBC’s FX strategists Frances Cheung and Christopher Wong note.

Risks are skewed to the downside

“Bullish momentum on daily chart intact but shows signs of fading while RSI fell. Risks are somewhat skewed to the downside. Support at 0.8375 (2024 low). Resistance at 0.8520 levels. SNB policy decision in focus tomorrow. It is likely policymakers will lower policy rate (by 25bp) to 1%, for the 3rd consecutive time this year.”

“There were some chatters if SNB may follow Fed in delivering a 50bp cut this Thu, but we doubt SNB needs to. Swiss inflation is well under control at 1.1%, in line with SNB’s expectations and a benign inflation profile allows for SNB to ease policy. In addition, industry lobby groups including watchmakers, technology manufacturers’ association have urged SNB and the government to support exporters by curbing the strength of CHF.”

“We are still of the view that recent CHF strength should slow but if broad bearish USD trend remain dominant, then USD/CHF may still be skewed to the downside. From a TWI perspective, we should expect CHF strength to slow.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.