USD/CHF moves sideways below 0.9000 as markets remain calm ahead of FOMC
|- USD/CHF continues to fluctuate in a narrow range.
- US Dollar Index stays directionless around 90.50 on Wednesday.
- Focus shifts to FOMC's policy announcements and dot plot.
After failing to hold above 0.9000 on Tuesday, the USD/CHF pair closed in the negative territory and seems to be having a difficult time regaining its traction on Wednesday. As of writing, the pair was up 0.13% on the day at 0.8992.
Fed set to leave policy settings unchanged
With investors staying on the sidelines ahead of the FOMC's policy announcements, the US Dollar Index (DXY) continues to move sideways around 90.50 for the third straight day. Meanwhile, Tuesday's mixed macroeconomic data releases from the US failed to provide a directional clue to the USD.
The Federal Reserve is expected to keep its policy settings unchanged following the June policy meeting. However, investors will keep a close eye on the Summary of Economic Projections to see if there is a hawkish shift in policymakers' rate outlook.
Previewing this event, "median projections for core inflation in 2022/2023 will probably rise slightly, consistent with a sizable revision to 2021 being viewed as largely reflecting transitory factors," noted TD Securities analysts. "The median dot will probably show a rate hike by end-23. A less dovish Fed tone next week would help to stabilize the USD in the very short run."
Federal Reserve Preview: Forecasts from 11 major banks, eyeing any hints of tapering.
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.