USD/CHF Sees Volatility Amid Mixed Signals from Fed, Market Awaits Key Economic Data
The USD/CHF currency pair is currently on a roller coaster, driven by conflicting signals from the Fed and mixed economic data. The Swiss Franc is under close scrutiny as investors await an SNB rate decision. Market focus now shifts to key economic indicators from both the U.S. and Switzerland, expected later this week.
USD/CHF Aims for Recovery as Fed Policy Takes Center Stage
The USD/CHF pair has extended its recovery being supported by the US Dollar ahead of Fed policy. The Swiss’s annual Real Retail Sales contracted sharply by 1.9%, which indicates that the Swiss economy is struggling to tame stubborn inflation. Investors are running for the US Dollar Index (DXY) as a safe-haven ahead of the interest rate decision by the Federal Reserve (Fed), and this has resulted in the pair preparing for a bullish reversal as it is gathering strength after breaking the declining trendline plotted at 0.9439.
Swiss Franc and Japanese Yen are Becoming Favored Safe Havens
The Swiss franc and the Japanese yen are emerging as “more attractive” alternatives to the dollar as safe-haven assets, ING says. “With the possibility of grim U.S. economic and pandemic prospects starting to weigh on USD now, both CHF and JPY may be looking at more gains vs the greenback,” ING FX strategist Francesco Pesole […]