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Taiwans M2 money supply annual growth rate was 7.83% in May, compared to 6.45% in the previous month.On June 18th, Mike Shedlock, a registered investment advisor at SitkaPacific Capital Management, stated that Warsh was Trumps best choice among all his appointments. In his debut as Federal Reserve Chairman, Warsh didnt rush in with preconceived notions, but instead promised to research better data collection methods. Warsh disliked the "dot plot" guidance, but instead of immediately repealing it, he chose not to submit forecasts. Greenspan, Bernanke, Yellen, and Powell, on the other hand, were all "disasters." Bernanke was the worst, implementing massive quantitative easing, paying interest on reserves, and being a staunch advocate of forward guidance. Warsh wanted to repeal the "paying interest on reserves" policy, a legacy of Bernankes policies. This is a welcome change. Warshs slow and meticulous research-based reform approach is more likely to gain consensus quickly than forceful implementation. At least, Warsh brought about necessary changes. However, not everything is perfect. I strongly criticize Warshs proposed "cut-off mean inflation" indicator, which removes more inflation data than it retains. I also have doubts about his so-called "market-based measure of inflation".Russian President Vladimir Putins secretary, Kobyakov, said: "The energy shortage will only worsen in the coming years."Swiss National Bank President: We take the overall situation into account when we intervene. The Swiss franc has depreciated slightly since the last meeting.International Energy Agency Executive Director Fatih Birol: I hope that lasting peace can be achieved between Iran and the United States, and that the Straits can be opened.

USD/CHF Consolidates in a Range of 0.9320-0.9350 on Expectations of Rate Reversion to Neutral

Drake Hampton

Apr 08, 2022 09:57

Tips

  • USD/CHF remained stuck around 0.9350 despite a big increase in US Treasury yields.

  • The DXY is aiming for 100.00 as traders increase their expectations for an aggressive rate hike.

  • Russia resigns from the United Nations Human Rights Council.

 

Since Thursday, the USD/CHF pair has been swinging within a narrow band of 0.9318-0.9348 as Federal Reserve (Fed) policymakers have begun prescribing a reversion to neutral rates from ultra-loose monetary policy postures.

 

After commenting on the amount to which the Fed will raise interest rates in future monetary policies, members of the Fed's Monetary Policy Committee (MPC) have changed their focus to calling for a return to neutral policy. The ultra-loose monetary policies and helicopter money used to boost growth following the Covid-19 outbreak have served their purpose, and it would be preferable to return to normal rates and a self-sufficient economy. Atlanta Fed President Raphael Bostic stated on Thursday that while it is quite acceptable for the Fed to move policy closer to neutral, it should go cautiously, according to Reuters.

 

On the Russia-Ukraine front, Russia is expelled from the United Nations (UN) Human Rights Council after its members voted against the Kremlin's war crimes in Bucha, Ukraine. Additionally, US lawmakers have decided to prohibit Moscow from importing oil, gas, and coal. Additionally, the former has opted to revoke its 'Most Favored Nation' trade designation, resulting in higher tariffs for Moscow.

 

Meanwhile, the US dollar index is heading towards the enchanted level of 100.00, fueled by forecasts for better US Consumer Price Index (CPI) data next week. The yield on the 10-year US Treasury note has recaptured a three-year high of 2.66 percent as rate rise worries resurface.

USD/CHF

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