EUR/USD 1.16687
-0.163%
Gold 5345.00
0.440%
Oil 72.749
2.878%
USD/JPY 157.411
0.038%
GBP/USD 1.33679
-0.276%
GBP/JPY 210.430
-0.231%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
U.S. State Department: The United States has ordered the evacuation of non-emergency government personnel and their families from Iraq.The yield on 40-year Japanese government bonds rose 5.0 basis points to 3.555%.Goldman Sachs has raised its TTF natural gas price forecast for April 26 to €55/MWh ($19/MMBtu) due to disruptions in Qatars liquefied natural gas supply, up from €36/MWh previously.On March 3, European Central Bank (ECB) Chief Economist Lane warned that a prolonged conflict in the Middle East and a continued decline in oil and gas supplies in the region could lead to a "significant spike" in eurozone inflation and a "sharp decline in output." He stated that "in terms of direction, a jump in energy prices would put upward pressure on inflation, especially in the short term," and that this development would have a "negative impact" on economic growth. Lane added that "if it also triggers a repricing of risks in financial markets, the impact would be amplified." Lane cited a scenario analysis released by the ECB in December 2023, which indicated that if the Middle East conflict leads to a continued decline in energy supplies and disruptions to regional economic activity, there would be a significant spike in energy-driven inflation and a sharp decline in output. In that analysis, the ECB assumed that one-third of the oil and gas supplies transported through the Strait of Hormuz would be disrupted. In this scenario, oil prices, then around $80 per barrel, would rise by more than 50% to around $130. Eurozone economic growth would decline by 0.6 percentage points the following year, while inflation would rise by more than 0.8 percentage points.According to the Financial Times, Netflix (NFLX.O) has warned that the deal between Paramount and Warner Bros. Discovery (WBD.O) will result in layoffs.

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

image.png 


Suggestion