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February 7th - US President Trump tweeted: "We need more competition to fight our enemies—the national television networks that spread fake news. Facilitating a good deal like Nexstar-Tegna will help combat fake news because it will bring more, higher-level, and more sophisticated competition. Those who oppose it dont fully understand the benefits for them, but they will in the future. Get this deal done!"February 7th - Ukrainian President Volodymyr Zelenskyy posted a message on the 7th local time, stating that he received a briefing from the Ukrainian negotiating team following their talks with the US and Russia. The Ukrainian negotiating team provided him with a detailed overview of the progress of the negotiations. He stated that Ukraine needs to achieve substantial results, and one of the most important foundations for a peaceful resolution is effective security guarantees.February 7th - While the control dispute at Nexperia remains unresolved, another Chinese acquisition of a British chip company is attracting increasing attention. February 7th was the deadline set by the UK government for the mandatory sale of the FTDI acquisition, subject to national security review. This overseas acquisition by China, completed in 2021, is now entering its final countdown to mandatory sale. Back in November 2024, the UK government formally notified the Chinese consortium that it must transfer all its shares in Future Technology Devices International Limited (FTDI), a UK USB bridge chip company, by the stipulated time. The UK cited the National Security and Investments Act (NSIA), which came into effect in 2022, citing "potential threats to national security." An industry insider stated that the Chinese consortium has been trying to secure more time. The latest extension application is still awaiting a response from the UK, and based on past experience, there is still a certain probability of the extension being approved.February 7th - It was learned from the Ministry of Water Resources that, in order to further improve the construction, operation, and management mechanisms of major water conservancy projects, the Ministry of Water Resources and the National Development and Reform Commission recently issued the "Implementation Opinions on Improving the Construction, Operation, and Management Mechanisms of Major Water Conservancy Projects." Major water conservancy projects are important infrastructure for promoting high-quality economic and social development, playing a crucial supporting role in ensuring flood control, water supply, food security, and ecological security. The opinions are divided into four parts: general requirements, improving the high-quality construction mechanism, improving the high-level operation mechanism, and improving the high-efficiency management mechanism. The opinions require that, focusing on the national water network construction goals of "complete systems, safety and reliability, intensive and efficient, green and intelligent, smooth circulation, and orderly regulation," the government should guide and the market should participate, coordinating "hard investment" and "soft construction," improving the construction and operation mechanism of projects with clear responsibilities, diversified investment, and a focus on both quality and efficiency, and forming a comprehensive, data-driven, and efficient management and guarantee system to achieve high-quality construction, high-level operation, and high-efficiency management of major water conservancy projects.Algeria plans to cancel its air services agreement with the United Arab Emirates.

USD/CHF Moves Sideways to 1.0020 as DXY Holds Steady and Powell Warns of Additional 50 bps Rate Hikes

Daniel Rogers

May 13, 2022 09:53

The USD/CHF pair is experiencing a pullback as momentum oscillators on the lower timeframe have become very overbought. During the Asian trading session, the pair is fluctuating within a tight range of 1.0024 to 1.0035. Sustaining the dollar bulls above the psychological support of 1.0000 will be advantageous going forward.

 

The pair has stayed in the grip of dollar bulls as measured by the rising US dollar index (DXY). The DXY is gaining significantly due to optimistic economic statistics. The outperformance of the US Nonfarm Payrolls (NFP) and the higher-than-expected publication of the US Consumer Price Index (CPI) and Producer Price Index (PPI) have increased the likelihood that the Federal Reserve (Fed) will implement more significant rate hikes this year.

 

After reaching a new 19-year high of 104.93 during the European session, the DXY is undergoing a minor pullback in the Asian session. In an interview with the national radio program Marketplace, Fed chair Jerome Powell said that the Fed may raise interest rates by 50 basis points (bps) at each of the next two policy sessions. In addition, the Fed promises that "we're prepared to do more" if data deteriorate.

 

In the meantime, the Swiss franc faces a prolonged dramatic sell-off as their ultra-loose monetary policy fails to stimulate demand growth in their economy. In addition, the unchanged unemployment rate and inflation figures failed to provide a buffer for the asset.

USD/CHF

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