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Poor Macroeconomic Data Put Pressure on the Franc Positions

3/2/2023 1:07 PM

Against the backdrop of a local increase in the US dollar and the weakness of the franc, which is constrained by negative macroeconomic reports, the USD/CHF pair is trading at 0.9422.

A major disappointment for investors was the recent Swiss Gross Domestic Product (GDP) data, which showed zero growth in the fourth quarter of 2022, with expectations of growth of 0.1%, which led to an annual rate of 0.8%, compared to acceleration forecasts of growth to 1.0%. One of the reasons for the weakening of the indicator can be considered retail sales, which lost 2.2% in January, which coincided with analysts' calculations. Also, the PMI fell to 48.9 from 49.3 earlier, well below the positive forecast of 50.4.

The US dollar retreated from local highs and is at 104.500 in the USD Index against the negative report on the index of business activity in the manufacturing sector from the Institute for Supply Management (ISM), which amounted to 47.7 points in February, below the analysts' forecast of 48.0 points. Today, data on the labor market will be published: initial jobless claims may grow to 195.0K from 192.0K earlier.

On the daily chart, the trading instrument is growing, holding above the resistance line of the local downward corridor with dynamic boundaries 0.8900–0.9230.

Technical indicators have given a buy signal: fast EMAs on the Alligator indicator are actively moving away from the signal line, and the AO histogram is forming rising bars in the buying zone.

Resistance levels: 0.9480, 0.9620. | Support levels: 0.9360, 0.9190.

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