USD/CHF is about to make new August lows!
Will today’s U.S. PPI release drag the pair to a key support zone?
Before moving on, ICYMI, yesterday’s watchlist looked at AUD/JPY possibly hitting a descending channel resistance after China printed its CPI numbers. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Lower gas prices stalled monthly U.S. inflation, dragged annual rates from 9.1% to 8.5% in July
Fed’s Kashkari: endorsed 3.9% rate by Dec and 4.4% by end of 2023 back in June, hasn’t seen data to change his stanceRICS: UK house prices on the rise despite fall in new buyer inquiries
Australia inflation expectations ease from 6.3% to 5.9% in August
Peak inflation bet lifts stocks, dollar in doldrums
Oil steadies as IEA hikes 2022 demand growth forecast
European stocks set to extend gains
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. PPI reports at 12:30 pm GMT
U.S. initial jobless claims at 12:30 pm GMT
BusinessNZ manufacturing index at 10:30 pm GMT
U.K. Q2 preliminary GDP at 6:00 am GMT (Aug 12)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: USD/CHF
USD/CHF Daily Forex Chart
Yesterday’s U.S. CPI reports got traders selling USD and USD/CHF was no exception.
The pair is not only trading below its daily 200 SMA, but it also looks ready to make new August lows!
I’m keeping tabs on today’s U.S. PPI release to see if USD continues to lose pips to CHF.Traders are expecting headline producer prices to slow down in July while core PPI could maintain its 0.4% pace.
Downside surprises would support speculations that the Fed will have room to slow down its rate hikes and maybe start thinking about rate cuts in 2023.
I’m keeping tabs on the .9350 zone that lines up with a key resistance from September to April as well as a trend line support on the daily.
Further USD selling might drag USD/CHF to the support zone before seeing buying pressure.
