USDCHF yesterday drew a bearish candlestick with a small shadow on the top candle. This forms the lower low of the previous candle below the middle band line.
The US dollar seems to be facing challenges because US government bond yields are declining amid the increasing possibility of a Fed interest rate cut.
Yesterday's JOLTS data showed an actual value of 7.67M lower than the expected 8.09M, also lower than the previous data revision of 7.91M. The market response to lower US jobs data caused the USD to weaken.
On the other hand, Swiss inflation slowed to 1.1% in August from 1.3% in the previous month, below expectations of 1.2%. In April and May, the rate of price increase rose to 1.4% but then started to fall again, falling 0.2% in the last three months. Further slowdown may provide opportunities for monetary policy easing.
The market will still be waiting for other important US NFP data which will be released on Friday and may provide an idea of the potential for a Fed interest rate cut this month.
Today investors will focus on ADP Non-Farm Employment Change data which is expected to rise to 144k from the previous 122k. Meanwhile, Unemployment Claims are expected to be the same as the previous 231k.
View attachment 7398
The US dollar seems to be facing challenges because US government bond yields are declining amid the increasing possibility of a Fed interest rate cut.
Yesterday's JOLTS data showed an actual value of 7.67M lower than the expected 8.09M, also lower than the previous data revision of 7.91M. The market response to lower US jobs data caused the USD to weaken.
On the other hand, Swiss inflation slowed to 1.1% in August from 1.3% in the previous month, below expectations of 1.2%. In April and May, the rate of price increase rose to 1.4% but then started to fall again, falling 0.2% in the last three months. Further slowdown may provide opportunities for monetary policy easing.
The market will still be waiting for other important US NFP data which will be released on Friday and may provide an idea of the potential for a Fed interest rate cut this month.
Today investors will focus on ADP Non-Farm Employment Change data which is expected to rise to 144k from the previous 122k. Meanwhile, Unemployment Claims are expected to be the same as the previous 231k.
View attachment 7398
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