USD/CHF steadies around 1.0020 as DXY pauses, Fed’s Powell and US Retail Sales in focus

USD/CHF is hovering around 1.0020 amid a light economic calendar on Monday.
Fed Powell has hinted at two more jumbo rate hikes by the end of the year.
An outperformance is expected from the US Retail Sales as it may land at 0.7% on a monthly basis.

Sagar Dua FXStreet

The USD/CHF pair is oscillating in a narrow range of 1.0020-1.0030 in early Tokyo as the US dollar index (DXY) is not getting much traction amid the light economic calendar on Monday. Although broad-based fundamentals are still favoring the greenback bulls as the Federal Reserve (Fed) is expected to paddle up the interest rates by one more big number in June to contain the inflation mess.

Last week, Fed’s Powell interview with the Marketplace national radio program unveiled the ongoing discussions between the Fed policymakers over the rate hikes in upcoming monetary policies. Fed Powell dictated that the Fed could announce two more bumper rate hikes in the next two monetary policy meetings consecutively to rein in the roaring inflation.

Meanwhile, the US dollar index (DXY) is balancing in a 104.46-104.60 range after printing a fresh 19-year high of 105.00 on Friday. The DXY is enjoying the broader strength but seeks more triggers to sustain strength. Going forward, two major events on Tuesday will keep investors busy. First will be the speech from Fed Powell, which will dictate the likely monetary policy action in June. The second important event is monthly US Retail Sales, which is seen at 0.7% against the prior print of 0.5%.

On the Swiss franc front, Friday’s Industrial Production data will hog the limelight. The catalyst landed at 7.3% last time. A higher-than-expected figure will support the Swiss franc against the greenback.

USD/CHF

Overview
Today last price	1.0026
Today Daily Change	0.0004
Today Daily Change %	0.04
Today daily open	1.0022

Trends
Daily SMA20	0.9742
Daily SMA50	0.9491
Daily SMA100	0.9346
Daily SMA200	0.928

Levels
Previous Daily High	1.0047
Previous Daily Low	0.9992
Previous Weekly High	1.0049
Previous Weekly Low	0.9872
Previous Monthly High	0.9759
Previous Monthly Low	0.9221
Daily Fibonacci 38.2%	1.0013
Daily Fibonacci 61.8%	1.0026
Daily Pivot Point S1	0.9994
Daily Pivot Point S2	0.9966
Daily Pivot Point S3	0.9939
Daily Pivot Point R1	1.0049
Daily Pivot Point R2	1.0075
Daily Pivot Point R3	1.0104

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.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold defends key $4,280 support ahead of Fed verdict

Gold is attempting another run above $4,300 early Wednesday, replicating a tepid bounce seen in Tuesday’s Asian trading. Gold’s next major directional move depends on the US Federal Reserve monetary policy decision and outlook due later in the day.

Ethereum continues to attract capital despite impending rate hike and Clarity Act failure

Ethereum declined to $2,400 on Tuesday after the Clarity Act failed to progress in the Senate. Despite that and the market's near certainty of an interest rate hike at the next Federal Reserve (Fed) meeting, the top altcoin has continued to attract fresh capital. Ethereum buyers have been dominating sellers over the past few days.

August UK inflation report expected to show rising inflation

The United Kingdom Office for National Statistics will publish the highly anticipated Consumer Price Index data for August on Wednesday at 06:00 GMT. The inflation report could trigger volatility in the British Pound, as it comes just one day before the Bank of England monetary policy decision.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.