The USDCHF pair remains quiet in the Asian trading session early Wednesday. The pair resumed to drop since the beginning of the week after testing the five-month high above 0.9330 on Monday.
The US Dollar Index turned negative near 93.20, with 0.05% losses although US yields hold at 1.32% gains, reducing the downside for the US Dollar.
Traders continue to be alert ahead of the two-day FOMC policy meeting, which will finish on Wednesday. Fed’s officials are expected to signal a start to scaling down the monthly asset purchase program.
The Swiss franc holds strong on its safe-haven appeal amid reduced risk appetite despite IMF comments on China. The International Monetary Fund (IMF) Chief Economist Gita Gopinath said that China has tools and policy space to prevent the Evergrande situation from turning into a systematic crisis, as per Reuters.
Additionally, Switzerland’s trade surplus expanded to a new record high of CHF 4.5 billion in August, as exports rose more than imports, which kept Swiss currency on the higher side. For today, investors wait for the Swiss Current Account, SNB Quarterly Bulletin, US Fed Interest Rate Decision, and FOMC Economic Projections to get a new momentum in the pair.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.