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USDCHF Market Update

11/7/2022 11:12 AM

During the Asian session, the USD/CHF pair is declining uncertainly, testing 0.9950 for a breakdown.

At the end of last week, the US currency retreated from local highs of October 21, reacting to the publication of a controversial report on the US labor market for October, which reflected an increase in the number of new jobs by 261.0K, while the forecast was for an increase of only 200.0K. At the same time, the September figure was revised upward from 263.0K to 315.0K. The unemployment rate accelerated from 3.5% to 3.7%, ahead of experts' forecasts of 3.6%. Thus, the labor market in the US is still quite stable. Likely, such data will not greatly affect the future monetary policy of the US Federal Reserve, which at the last meeting signaled in favor of reducing the pace of monetary tightening in the next few months: in December of this year, analysts expect an increase in interest rates by only 50.0 basis points.

The focus of investors at the beginning of the trading week is the publication of statistics from Switzerland on the labor market: current forecasts suggest that the unemployment rate for October will remain at the same level of 2.1%. The US is due to publish September consumer lending statistics during the day, and traders will also be looking forward to speeches by Federal Reserve Bank of Boston Susan Collins and Fed Open Market Committee member Loretta Meister.

Also, the Swiss Sygnum Bank announced the launch of an institutional-grade platform that combines recommendations on the concept of non-fungible tokens (NFTs). In particular, the platform allows authors to issue and sell NFTs to their clients in full compliance with the existing regulatory framework and also simplifies the processing of taxes and balances and the conversion of digital assets into fiat currency. According to experts, this is the first step of such a large financial institution in the country in providing reliable services to a wider range of users outside of its banking environment.

On the daily chart, Bollinger bands are slightly declining: the price range is narrowing from above, indicating the emergence of the "bearish" pressure in the ultra-short term. MACD reversed, forming a new sell signal (the histogram is below the signal line). Stochastic shows a more active decline but is also rapidly approaching its lows, indicating that the US dollar may become oversold in the ultra-short term.

Resistance levels: 1.0000, 1.0050, 1.0100, 1.0146. | Support levels: 0.9948, 0.9914, 0.9876, 0.9840.

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