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USD/CHF recovers to near 0.9000 ahead of Fed Powell’s testimony. Investors expect that the Fed will start reducing interest rates from September. Market speculation for more rate cuts by the SNB has improved. The USD/CHF pair rebounds to near the psychological resistance of 0.9000 in Tuesday’s European session. The Swiss Franc asset moves higher as the US Dollar (USD) gains ground ahead of the Federal Reserve (Fed) chair Jerome Powell’s semi-annual Congressional testimony, which is scheduled at 14:00 GMT. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, steadies after declining to a fresh three-week low near 104.85. Fed Powell would provide cues about when the central bank will start reducing interest rates. Financial markets currently expect the Fed to begin lowering its key rates from the September meeting. This week, the major trigger for the US Dollar will be the US inflation data for June which will be published on Thursday. On the Swiss Franc front, investors expect that the Swiss National Bank (SNB) could continue easing its monetary policy as inflation in the Swiss economy has decelerated further. Annual Swiss inflation grew at a slower pace of 1.3% in June from the estimates and the prior release of 1.4%. USD/CHF trades in a Falling Channel chart pattern on a daily timeframe in which each pullback is considered as selling opportunity by market participants. The Swiss Franc asset finds cushion near 200-day Exponential Moving Average (EMA) around 0.8950, suggesting that a bullish long-trend is intact. The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, suggesting indecisiveness among investors. Going forward, a decisive upside above June 3 high at 0.9036will drive the asset towards May 28 low at 0.9086, followed by May 30 high at 0.9140. On the flip side, the asset would…

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Filed under: News - @ July 9, 2024 12:30 pm