Created
: 2024.04.15
2024.04.15 17:25
The USD/CHF pair hovers near six-month high around 0.9150 in Monday's European session. The Swiss Franc asset is expected to extend upside as the US Dollar strengthens due to potential risks of further escalation in Middle East tensions and receded hopes of Federal Reserve (Fed) lowering interest rates from the June meeting.
S&P 500 futures have posted significant gains in the European session, portraying some improvement in investors' risk appetite. Though risky assets could retreat amid fears that Israel could retaliate to airstrike by Iran in which hundreds of drones and missiles were launched.
10-year US Treasury yields soar to 4.55% as the Federal Reserve (Fed) has no urgency to reduce interest rates with inflation remaining persistently higher. The speculation for the Fed reducing interest rates in the June and July meetings has faded and investors are now anticipating rate cuts in the September meeting.
The US Dollar Index (DXY) turns sideways after refreshing five-month high near 106.00. In today's session, investors will focus on the monthly Retail Sales data for March, which will be published at 12:30 GMT. The Retail Sales data is estimated to have grown at a slower pace of 0.3% against the prior reading of 0.6%. A slowdown in Retail Sales would release some heat from the stubborn inflation outlook.
Meanwhile, the Swiss Franc remains on the backfoot as the Swiss National Bank (SNB) is expected to cut interest rates again in the June meeting, keeping in mind that inflation has come down sustainably below 2%.
The confidence in price pressures slowing further has deepened after the Swiss Producer and Import Prices grew moderately in March. Monthly producer inflation grew steadily by 0.1%. Annually, Producer and Import prices contracted at a higher pace of 2.1% from the former reading of 2.0%.
Created
: 2024.04.15
Last updated
: 2024.04.15
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy