USD/CHF Price Analysis: SHORT
House Speaker McCarthy said the debt limit can't pass without dealing with the budget.
The USD/CHF pair has rebounded after a corrective move to near 0.8930 in the early Asian session. The Swiss Franc asset has sensed buying interest amid an absence of a clear path for an increase in the US debt-ceiling limit. House Speaker McCarthy said the debt limit can't pass without dealing with the budget, as reported by Bloomberg.
The US Dollar Index (DXY) has taken a sigh of relief amid a delay in the increase of the debt ceiling limit as an occurrence that will impact the long-term rating of the United States economy and will impact the US Dollar and domestic equities.
USD/CHF has recovered sharply after a Double Bottom chart formation on a four-hour scale near 0.8863. The Swiss Franc asset is aiming to conquer the downward-sloping trendline plotted from March 08 high at 0.9439.
The major has climbed above the 20-and 50-period Exponential Moving Averages (EMAs) at 0.8921 and 0.8935 respectively, indicating solid short-term upside bias.
The USD/CHF pair has rebounded after a corrective move to near 0.8930 in the early Asian session. The Swiss Franc asset has sensed buying interest amid an absence of a clear path for an increase in the US debt-ceiling limit. House Speaker McCarthy said the debt limit can't pass without dealing with the budget, as reported by Bloomberg.
The US Dollar Index (DXY) has taken a sigh of relief amid a delay in the increase of the debt ceiling limit as an occurrence that will impact the long-term rating of the United States economy and will impact the US Dollar and domestic equities.
USD/CHF has recovered sharply after a Double Bottom chart formation on a four-hour scale near 0.8863. The Swiss Franc asset is aiming to conquer the downward-sloping trendline plotted from March 08 high at 0.9439.
The major has climbed above the 20-and 50-period Exponential Moving Averages (EMAs) at 0.8921 and 0.8935 respectively, indicating solid short-term upside bias.
Comment:
The US Week Ahead
The US CPI Report will impact the EUR/USD on Wednesday. Following the US Jobs Report, a hotter-than-expected US CPI Report would refuel bets on a June Fed interest rate hike.
On Thursday, wholesale inflation and jobless claims figures will also draw interest before consumer sentiment numbers on Friday.
Investors should track FOMC member reactions to the US Jobs Report and the incoming US CPI Report.
According to the CME FedWatch Tool, the probability of a 25-basis point June interest rate hike rose from 0.0% to 8.5%. On Friday, the US Jobs Report drove the modest rise. However, the US Jobs Report wiped out bets on a June Fed interest rate cut.
The US CPI Report will impact the EUR/USD on Wednesday. Following the US Jobs Report, a hotter-than-expected US CPI Report would refuel bets on a June Fed interest rate hike.
On Thursday, wholesale inflation and jobless claims figures will also draw interest before consumer sentiment numbers on Friday.
Investors should track FOMC member reactions to the US Jobs Report and the incoming US CPI Report.
According to the CME FedWatch Tool, the probability of a 25-basis point June interest rate hike rose from 0.0% to 8.5%. On Friday, the US Jobs Report drove the modest rise. However, the US Jobs Report wiped out bets on a June Fed interest rate cut.
Comment:
he franc has been among the best performing major currencies this week as traders generally seem to be confident that the problems in the banking sector are over for now. 88.6 centimes, the low yesterday afternoon, is the strongest the franc has been against the dollar in more than two years. As above though for dollar-loonie, finding an entry to sell here after such a strong drop in only a few days would usually be considered excessively risky except in the very short term.
Three black crows is normally a strong signal of continuation downward, so combined with the faster moving averages successively below slower ones the downtrend seems to be here to stay until the Fed’s next meeting barring a sudden shift in sentiment. There are no major economic indicators due next week from either country
Three black crows is normally a strong signal of continuation downward, so combined with the faster moving averages successively below slower ones the downtrend seems to be here to stay until the Fed’s next meeting barring a sudden shift in sentiment. There are no major economic indicators due next week from either country
Comment:
Gold’s Rising Consolidation Phase Stalls, But Quickly Finds Support Following Pullback
Comment:
Gold reached its target for the completion of an AB=CD pattern yesterday and has since moved into a retracement. So far, the pullback tested support of the 21-Day EMA line today, with a low for the day at 1,999. Price was rejected from the line to the upside for an intraday bounce. The dip also completed a 78.6% Fibonacci retracement of the near-term upswing. This could be the end of the correction. Nevertheless, lower key support is around the uptrend line, estimated at 1,994 currently, and the 34-Day EMA at 1,985.
Comment:
USD/CHF juggles above 0.8900 as investors await US CPI for more guidance
Comment:
Swiss annual CPI softened to 2.6% from the consensus of 2.85 and the former release of 2.9%
Comment:
The USD/CHF pair is displaying a back-and-forth action near the round-level cushion of 0.8900 in the Asian session. The Swiss franc asset has turned sideways as investors are awaiting the release of United States Consumer Price Index (CPI) data, which will release on Wednesday.
Comment:
On the Swiss franc front, annual CPI softened to 2.6% from the consensus of 2.85 and the former release of 2.9%. Monthly inflation remained stagnant while the street was anticipating an escalation by 0.5%. This might provide some relief to Swiss National Bank (SNB) policymakers.
Comment:
LEVELS
Previous Daily High 0.8974
Previous Daily Low 0.8835
Previous Weekly High 0.8995
Previous Weekly Low 0.882
Previous Monthly High 0.9198
Previous Monthly Low 0.8852
Daily Fibonacci 38.2% 0.8921
Daily Fibonacci 61.8% 0.8888
Daily Pivot Point S1 0.8838
Daily Pivot Point S2 0.8767
Daily Pivot Point S3 0.8699
Daily Pivot Point R1 0.8977
Daily Pivot Point R2 0.9045
Daily Pivot Point R3 0.9116
Previous Daily High 0.8974
Previous Daily Low 0.8835
Previous Weekly High 0.8995
Previous Weekly Low 0.882
Previous Monthly High 0.9198
Previous Monthly Low 0.8852
Daily Fibonacci 38.2% 0.8921
Daily Fibonacci 61.8% 0.8888
Daily Pivot Point S1 0.8838
Daily Pivot Point S2 0.8767
Daily Pivot Point S3 0.8699
Daily Pivot Point R1 0.8977
Daily Pivot Point R2 0.9045
Daily Pivot Point R3 0.9116
Comment:
What is the debt ceiling?
The federal government operates in a deficit, spending more than it brings in with taxes, so it’s forced to borrow money to pay for everything from the salaries of armed forces and federal employees to Social Security
Congress has the power of the purse strings, letting it set a limit on what the government can borrow to pay for expenses (the debt ceiling). The current limit is $31.4 trillion.
What happens if the debt ceiling is not raised or suspended?
When does the U.S. hit spending limit?
How many times has the debt ceiling been raised?
How much has the U.S. debt increased in the past 20 years?
What caused the debt?
Answers here
The federal government operates in a deficit, spending more than it brings in with taxes, so it’s forced to borrow money to pay for everything from the salaries of armed forces and federal employees to Social Security
Congress has the power of the purse strings, letting it set a limit on what the government can borrow to pay for expenses (the debt ceiling). The current limit is $31.4 trillion.
What happens if the debt ceiling is not raised or suspended?
When does the U.S. hit spending limit?
How many times has the debt ceiling been raised?
How much has the U.S. debt increased in the past 20 years?
What caused the debt?
Answers here
Comment:
Swiss Franc Eases from 2-Year High on Cool Inflation
Total consumer credit in the US rose $26.51 billion in March of 2023, after an upwardly revised $15 billion increase in the previous month and well above market expectations of a $16.5 billion rise. On a seasonally adjusted annual basis, consumer credit went up by 6.6 percent in March after a 3.7 percent gain in the prior month. Revolving credit, like credit cards, was up 17.3 percent, compared to a 5.7 percent rise in the prior month. Nonrevolving credit, typically auto and student loans, increased by 3 percent, following a 3.1 percent gain in the prior month.