USD/CHF is a mover and shaker on today’s session with global economic data looking grim, but will prices continue to move ahead of more speeches from Federal Reserve members today?
Intermarket Snapshot
| Equity Markets | Bond Yields | Commodities & Crypto |
| DAX: 10859.95 -0.31% FTSE: 6894.06 -0.18% S&P500: 2564.69 -0.78% DJIA: 23730.27 -0.62% |
US 10-yr 2.699% -0.029 Bund 10-YR 0.19% -0.025 UK 10-YR: 1.258% -0.002 JPN 10-YR: 0.024% -0.002 |
Oil: 51.53 -1.57% Gold: 1293.00 +0.08% Bitcoin: 3781.30 -5.74% Etherium: 131.54 -12.14% |
Fresh Market Headlines & Economic data:
- Oil Prices Ease After Eight-Day Rally
- China’s slowing inflation leaves ‘plenty of room’ for central bank to cut rates, analyst says
- China Factory Prices Rise at Slowest Pace in More Than Two Years
- Brexit: Theresa May considering Labour MP’s demands on workers rights
- Brexit: Jeremy Corbyn demands election to ‘break deadlock’
- French industrial production falls in November
- ECB to debate new cheap loans amid ‘fragile and fluid’ outlook: minutes
- EU Trade Chief Will Continue Talks With U.S.’s Lighthizer
- Fed’s Barkin says he is hearing concerns about economic growth
- Jobless Claims Fall to Four-Week Low in Tight U.S. Labor Market
Upcoming Potential Catalysts on the Forex Calendar:
- Fed’s Powell speaks in Washington at 5:00 pm
- Fed’s Evans speaks in Milwaukee at 6:00 pm
- Fed’s Kashkari speaks in Minnesota at 6:20 pm
- New Zealand Building Permits (m/m) at 9:45 pm GMT
What to Watch: USD/CHF
Given the string of weak economic data releases (most notably Chinese inflation data), negative developments for Theresa May and Brexit, and the lack of positive sentiment now that the U.S.-China trade meetings are over, it’s no wonder we’re seeing a round of global risk off sentiment as equities and oil prices take a hit, as well as a few ticks lower in global bond yields.
This means we’re seeing some action with the Greenback today, which I think should still be the focus with Fed Chair Jerome Powell answering questions on the economy and interest rates later in the session. We’ve also got Fed members Evans and Kashkari speaking as well later today, but if volatility does pop, it’s likely to come with Jerome Powell’s appearance.
And given the moves we’ve seen in USD/CHF since yesterday (a strong intraday move lower to 0.9720 followed by a stronger move back up above 0.9800), I think this is the pair to watch on the session if you’re trying to grab quick pips.
The 0.9800 – 0.9820 area is the one to watch as it was a previous consolidation area, which is now being tested with this mornings pop higher in the U.S. dollar. For the bears, a restest and failure here is a nice setup with a good potential R:R if keeping the stop tight above consolidation and targeting the Asia session swing low. For the bulls, a break above consolidation is something to consider, but only if Powell changes from his recent tune of “patience” on interest rate hikes that we’ve seen from him recently.
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