USD/CHF remains pressured for the third consecutive day while declining toward multi-year low marked the last week.Fed announces 0.25% increase in interest rates but markets expect its to be the last.
Swiss Franc pair’s recovery remains elusive as US statistics fail to underpin September rate hike concerns.bears jostle with the key support around 0.8580 as markets brace for the European Central Bank monetary policy decision during early Thursday, making rounds to 0.8600 round figure by the press time.
Even so, the Swiss Franc pair stays bearish for the third consecutive day amid the broad US Dollar weakness, as well as due to the market’s cautious optimism. That said, the US prints a three-day downtrend despite the Federal Reserve’s 0.25% interest rate hike, as well as readiness for an interest rate increase in September, amid fears of a sooner end to the tightening spell.
It’s worth observing that the US stock futures regain upside momentum targeting the yearly high marked the previous day while equities in the Asia-Pacific zone also edge higher as market participants sense a sooner end to the rate hike trajectory at the major central banks. Additionally, improvements in China data and the International Monetary Fund’s rejection of the recession woes also underpin the market’s mildly positive outlook.
It should be noted that the Swiss National Bank appears more hawkish compared to the Fed and hence exert downside pressure on the USD/CHF prices. Annualized for the second quarter , expected to ease to 1.8% from 2.0%, will be important to watch for clear directions. Also crucial will be the US Durable Goods Orders for June, likely easing to 1.0% from 1.8% prior , as well as the monetary policy announcements fromA seven-week-old rising support line, around 0.