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Switzerland Prepares to Reduce Gas Consumption

8/16/2022 12:03 PM

Due to the strengthening of the American currency, the USD/CHF pair is moving in a corrective trend around 0.9465.

In Switzerland, the energy crisis is rapidly developing, which requires decisive action from the government in anticipation of the heating season. So, yesterday, Energy Minister Simonetta Sommaruga, in an interview with one of the local publications, announced the intention of the authorities to join the initiative of European countries to reduce natural gas consumption by 15% this winter. The Council approved this plan of the European Union at the beginning of the month, and in Switzerland, where gas covers up to 15% of all energy consumption, there is a serious fear of its shortage during the heating season. Also, data on producer prices were published yesterday, which disappointed investors: the indicator fell by 0.1% after rising by 0.3% MoM in June, which caused a decrease in the rate of increase from 6.9% to 6%.3% YoY.

The influence of the US currency on the dynamics of the USD/CHF pair has recently decreased significantly, despite its strengthening yesterday to 106.200 in the USD Index. At the moment, dollar investors have almost no positive prospects left: they fear that the US Federal Reserve will begin to significantly reduce the rate of interest rate hikes, as inflation fell to 8.5% from 9.1%, also the housing market may continue to slowdown for the fourth month in a row: analysts suggest that the volume of construction of new homes will decrease to 1.540M from 1.559M.

On the weekly chart of the asset, the price is correcting within the downwards corridor, preparing to continue the decline. Technical indicators maintain a stable sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms down bars in the sell zone.

Resistance levels: 0.9521, 0.9650. | Support levels: 0.9411, 0.9223.

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