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USDCHF Market Update

8/9/2022 12:12 PM

During the Asian session, the USD/CHF pair is consolidating near 0.9550 in anticipation of new drivers for movement.

Investors are focused on the publication of positive July data from the US labor market: employment increased by 528.0K, exceeding the forecast of 250.0K and the June value of 398.0K, while unemployment decreased from 3.6% to 3.5 %, which increased the likelihood of tightening the monetary policy of the US Federal Reserve since the recession in the economy is not yet significant. Statistics gave impetus to the dollar. However, market participants expect quantitative confirmation of the effectiveness of the regulator's policy, which may be tomorrow's statistics on the dynamics of consumer inflation in the country for July. Analysts' forecasts suggest a slowdown in the index from 1.3% to 0.2% and from 9.1% to 8.7%.

Macroeconomic statistics from Switzerland moderately supported Franc: the data released at the beginning of the week reflected the preservation of the unemployment rate at the low of 2.2%, which indicates a strong labor market in the country. The driver of the increase in interest rates of the National Bank of Switzerland remains inflation, which remains steadily above 3.0%. However, investors are already investing a possible value correction in the currency's price on September 22, when the next meeting on monetary policy will occur. At the same time, an increase in rates from the US Federal Reserve is also expected.


On the daily chart, Bollinger bands are gradually reversing into a horizontal plane: the price range is narrowing, reflecting the appearance of multidirectional dynamics in the short term. The MACD indicator, after a short rise, reverses into a downward plane, forming a sell signal (the histogram tends to be below the signal line). Stochastic demonstrates similar dynamics, reversing downwards approximately in the center of its working area.

Resistance levels: 0.9650, 0.9700, 0.9762, 0.9847. | Support levels: 0.9520, 0.9469, 0.9400, 0.9300.




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