Yesterday USDCHF rose sharply drawing a long body bullish candlestick with almost no shadow on the top and bottom of the candle. Price formed a low of 0.84144, a high of 0.85067, and closed at 0.85012 on the FXOpen platform. Price rises from the lower band to approach the upper band line.
Ahead of the SNB interest rate decision the Swiss Franc performed weakly due to the strengthening of the USD which was supported by higher-than-expected US new home sales data. Actual new home sales data shows 716k from the forecast of 699k. However, the actual data is still lower than the previous revision of 751k.
The SNB is predicted to cut interest rates by 25 basis points from 1.25% to 1.00% in its interest rate policy decision which will be released today. Analysts expect the SNB to cut interest rates further as the Swiss economy's annual Consumer Price Index (CPI) has slowed to 1.1% in August. Investors will also look at the SNB Monetary Policy Assessment which may provide a picture of hawkish or dovish policy in the future.
Meanwhile, the Fed is predicted to cut interest rates by up to 50 basis points at its November meeting. According to the FedWatch tool by the CME Group, forecasts of the Fed cutting interest rates by 50 basis points rose by 59.2%, and forecasts of a 25 basis point cut by 40.8%.
Today investors are also waiting for US GDP data which is forecast at 3.0%, the same as the previous revision, and Unemployment Claims which is forecast at 224k from the previous revision of 219k. Markets will also consider Fed Chair Powell Speaks which may provide a hawkish or dovish policy picture before further interest rate decisions.
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Ahead of the SNB interest rate decision the Swiss Franc performed weakly due to the strengthening of the USD which was supported by higher-than-expected US new home sales data. Actual new home sales data shows 716k from the forecast of 699k. However, the actual data is still lower than the previous revision of 751k.
The SNB is predicted to cut interest rates by 25 basis points from 1.25% to 1.00% in its interest rate policy decision which will be released today. Analysts expect the SNB to cut interest rates further as the Swiss economy's annual Consumer Price Index (CPI) has slowed to 1.1% in August. Investors will also look at the SNB Monetary Policy Assessment which may provide a picture of hawkish or dovish policy in the future.
Meanwhile, the Fed is predicted to cut interest rates by up to 50 basis points at its November meeting. According to the FedWatch tool by the CME Group, forecasts of the Fed cutting interest rates by 50 basis points rose by 59.2%, and forecasts of a 25 basis point cut by 40.8%.
Today investors are also waiting for US GDP data which is forecast at 3.0%, the same as the previous revision, and Unemployment Claims which is forecast at 224k from the previous revision of 219k. Markets will also consider Fed Chair Powell Speaks which may provide a hawkish or dovish policy picture before further interest rate decisions.
View attachment 7619
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