The USDCHF bulls can catch a breath around weekly top, up 0.20% intraday near 0.9055 while heading into Wednesday’s European session open. The Swiss currency pair benefits from the inflation anxiety and geopolitical fears.
Rising fears of the Federal Reserve tapering ahead of the US Consumer Price Index (CPI) could be refer to as a major concern for the doubters. Also bad for the sentiment are headlines from Gaza that suggest over 35 deaths amid the historical Israel-Palestine conflict.
Additionally, mixed chatters concerning the covid vaccinations and virus woes in Asia, coupled with the Fed’s failures to convince markets of no monetary policy alteration, offer extra strength to the risk-off mood. S&P 500 Futures drop over half a percent while the US dollar index (DXY) jumps to the weekly high, up 0.20% to 90.35 by the press time.
The US dollar is likely to keep the head high before the CPI data but any positive surprises, which are less expected, may trigger market optimism and disappoint the USDCHF bulls afterward. It should, however, be noted that the rest of the risk catalysts, like covid, vaccine and geopolitics, will also be important for near-term trade direction.
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