Created
: 2024.07.03
2024.07.03 13:50
The USD/CHF pair trades with a mild positive bias for the seventh successive day on Wednesday and is currently placed just below its highest level in over a month touched the previous day. Spot prices, however, remain below mid-0.9000s as investors await more cues about the Federal Reserve's (Fed) rate-cut path before placing fresh directional bets.
Hence, the market focus will remain glued to the release of the FOMC meeting minutes, due later during the US session. Apart from this, traders will take cues from the US economic docket - featuring the ADP report on private-sector employment and the ISM Services PMI. The attention will then shift to the closely-watched US monthly jobs data, popularly known as the Nonfarm Payrolls (NFP) report on Friday. This will play a key role in influencing the near-term US Dollar (USD) price dynamics and help in determining the next leg of a directional move for the USD/CHF pair.
In the meantime, the markets have been pricing in a greater chance that the Fed will begin its monetary policy easing cycle in September. The bets were reaffirmed by Fed Chair Jerome Powell's dovish-sounding remarks on Tuesday, saying that the US economy has made significant progress on inflation and is back on the disinflationary path. This fails to assist the USD to attract any meaningful buyers. That said, the Swiss National Bank's (SNB) interest rate cut for the second consecutive meeting in June continues to undermine the Swiss Franc (CHF) and acts as a tailwind for the USD/CHF pair.
The aforementioned fundamental backdrop seems tilted in favor of bullish traders and suggests that the path of least resistance for the currency pair is to the upside. Hence, any corrective pullback is more likely to attract fresh buyers and remain limited near the 0.9000 psychological mark. Bulls, however, need to wait for some follow-through buying before positioning for an extension of the recent upward trajectory from the 0.8825 region, or a three-month low touched on June 18.
FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
Read more.Next release: Wed Jul 03, 2024 18:00
Frequency: Irregular
Consensus: -
Previous: -
Source: Federal Reserve
Minutes of the Federal Open Market Committee (FOMC) is usually published three weeks after the day of the policy decision. Investors look for clues regarding the policy outlook in this publication alongside the vote split. A bullish tone is likely to provide a boost to the greenback while a dovish stance is seen as USD-negative. It needs to be noted that the market reaction to FOMC Minutes could be delayed as news outlets don't have access to the publication before the release, unlike the FOMC's Policy Statement.
Created
: 2024.07.03
Last updated
: 2024.07.03
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