- USD/CHF pair recovered on Friday following upbeat NFP data.
- Major European equity indexes register small losses on Monday.
- US Dollar Index moves sideways above 97.50 mark.
Despite a 30-pip rebound fueled by the broad-based USD strength on Friday, the USD/CHF pair erased 100 pips for the week and is now staying flat on the day near 0.9900.
The data from the US on Friday revealed that Nonfarm Payrolls in November increased by 266,000 to bear the market expectation of 180,000 and helped the greenback outperform its rivals. The US Dollar Index, which posted losses for five straight days, added 0.3% on Friday to help the pair pull away from its lows.
Volatility to pick up later in the week
Nevertheless, investors seem to be refraining from taking large positions ahead of this week's key events that could potentially impact the market sentiment and the USD's valuation.
The US and China will try to finalize the phase-one of the trade deal before the planned tariff hike goes into effect on December 15th and the Federal Open Market Committee will announce the monetary policy decisions on Wednesday following the two-day meeting that will kick off on Tuesday.
Previewing the FOMC event, "barring unfavourable developments on the trade front in the coming days, we doubt the Fed 2020 central tendency GDP growth projection will be significantly altered, allowing the FOMC to remain “watchfully waiting” as Cleveland Fed president Loretta Mester put it," said analysts at National Bank Financial. "Our base case scenario remains for the target range to be left unchanged at 1.50 to 1.75%.”
Confirming the neutral mood on Monday, major European equity indexes are posting small daily losses while the S&P 500 futures remain flat on the day. Furthermore, the 10-year US Treasury bond yield is staying calm near last week's closing level of 1.81%.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.