- USD/CHF is likely to display more weakness as the Fed is expected to stick to a 75 bps rate hike.
- US Durable Goods orders are seen lower at -0.2%, which may slip core CPI further.
- Apart from Fed policy and US Durable Goods, Swiss Real Retail Sales will be of utmost importance.
The USD/CHF pair has faced barricades of around 0.9640 in the Asian session after a firmer upside in the initial hours of the trading session. The asset has remained in the grip of bears for the past week and is expected to slide further as the US dollar index (DXY) has remained vulnerable after the display of the long-run inflation expectations.
The release of the inflation expectations at 2.8% vs. the prior release of 3.1% has trimmed the expectations of 100 basis points (bps) interest rate hike by the Federal Reserve (Fed). However, expectations of more policy tightening measures are solid and a rate hike by 75 bps looks imminent. The leading indicators of inflation such as the overall inflation rate and core Consumer Price Index (CPI) have no signs of exhaustion yet.
Apart from that, the release of the US Durable Goods on Wednesday will be of utmost importance. The economic data is seen as significantly lower at -0.2%, significantly lower than the prior release of 0.8%.
On the Swiss franc front, the release of Real Retail Sales will hog the limelight. Earlier, the economic data landed at -1.6%. The economic catalyst is expected to remain higher as soaring energy bills and prices of food products will elevate Real Retail Sales. However, a slippage in the economic data will indicate a major slump in the overall demand. This may weaken the Swiss franc bulls ahead.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades on the back foot near 1.0600
EUR/USD is trading near 1.0600 in Tuesday's European trading hours, finding fresh sellers amid a pause in the US Dollar corrective decline. The pair remains cautious amid increased dovish ECB rate cut bets and geopolitical risks. ECB and Fed policymakers' speeches eyed.
GBP/USD struggles below 1.2700, awaits Bailey's testimony
GBP/USD struggles below 1.2700 in European trading on Tuesday, lacking a bullish conviction amid a steady US Dollar and as investors opt to wait for the Bank of England's (BoE) Monetary Policy Report Hearings before placing aggressive directional bets.
Gold could run into sellers at $2,655 on the road to recovery
Gold price extends the recovery into Asian trading on Tuesday, reversing half the previous week’s decline. The focus remains on the upcoming speeches from US Federal Reserve (Fed) policymakers and geopolitical tensions between Russia and Ukraine.
Chiliz Price Forecast: Targeting a 40% upswing ahead
Chiliz (CHZ) price continues to trade in green on Tuesday after rallying more than 14% in the previous day. The technical outlook suggests a further gain of 40%, and CHZ’s open interest is also rising, indicating an influx of additional money.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.