USD/CHF consolidates modest losses below 0.9050

Bulls take a breather on quiet Monday and the USD/CHF retreats to the 0.9030 zone.
Positive market mood amid debt-ceiling agreement weights on the US Dollar.
US NFP and Switzerland GDP data eyed.

Patricio Martín FXStreet

The USD/CHF trades for a second consecutive day with losses as interest in the US Dollar wanes due to the US debt-ceiling agreement announced on Sunday. This has fueled a positive market mood which is anathema to the safe-haven Greenback. In addition, as the US celebrates Memorial Day, the low volume in the markets seems to be weighing on the pair . On Tuesday, investors will eye Swiss Q1 GDP data.

Traders eye US NFP and Swiss Q1 GDP data

On Sunday, an announcement was made by US President Joe Biden and Republican House Speaker Kevin McCarthy stating that they have come to an agreement on extending the debt ceiling. The proposal suggests allowing the government to borrow money without increasing the limit, temporarily suspending it until 2025. However, the deal still needs approval from Congress, although officials are optimistic about its passage.

This news had a positive impact on Wall Street futures, and put downward pressure on the US Dollar.

On Tuesday, Swiss Statistics will release Gross Domestic Product (GDP) data from Q1. This is expected to have expanded at a weak annualized rate of 0.6% from its previous 0.8%.

Nonfarm Payrolls (NFP) data from the US from May is expected to hint at more pain in the American labor market whose outlook is heavily considered by the Federal Reserve for its monetary policy decisions. In that sense, labor market figures may have an impact on the expectations for the next meeting on June 14 and hence in the US Dollar price dynamics. Other relevant data that will be published this week includes the ISM services index and the ADP employment change data.

Levels to watch

Technically speaking and as per the daily chart, the USD/CHF holds a neutral-to-positive outlook for the short term, as the indicators still remain in positive territory despite losing momentum.

To gain momentum the bulls must retake the 0.9060 area which could potentially pave the way towards the 0.9075 area and then to the 100-day Simple Moving Average (SMA) at 0.9133.

On the downside, support levels are seen at the 0.9020 level followed by the psychological mark at 0.9000 and at the 20-day Simple Moving Average (SMA) currently at the 0.8960 zone.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.