The upcoming U.S. session will be light on data releases, but that doesn’t mean we won’t see volatility for the dollar.
Is USD/CHF gearing up to extend its upswing in the next couple of days?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- UK financial watchdog bans crypto exchange Binance
- BOJ was confident in June meeting of recovery as vaccination proceeds
- U.K. Health Secretary Sajid Javid is ‘lockdown skeptic’ and has vowed to end all restrictions on July 19
- Tech, banks drag Australia shares lower as states enter lockdown
- Asian shares kick-off week on cautious note as COVID-19 cases spike
- Dollar off to firm start as focus shifts to jobs data
Upcoming Potential Catalysts on the Economic Calendar:
- German Bundesbank President Weidmann to give a speech at 12:00 pm GMT
- BOE’s Haldane to give a speech at 12:00 pm GMT
- FOMC’s Williams to give a speech at 1:00 pm GMT
What to Watch: USD/CHF
In case you missed it, the dollar had a good run against its fellow safe-haven franc after Fed members shared their optimism on the economy and hinted of at least two rate hikes in 2023.But that was more than a week ago. Since then, Fed officials have sent us mixed signals while data releases from the U.S. warranted the Fed’s loose monetary policies.
Can the dollar strengthen some more against the franc? USD/CHF is showing a possible bullish flag after breaking above a weeks-long consolidation on the 1-hour time frame.
If traders who sold the dollar back in April decide to take profits near the end of Q2 2021, then we could see some more dollar strength that could push USD/CHF to the .9235 area of interest or the .9400 previous high.
But if this week’s U.S. employment reports point to the need for easy monetary policies, then dollar demand could take hits and turn USD/CHF’s “flag” into a legit downtrend on the chart.
What do you think? Which way will USD/CHF go this week?