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The Brazilian government announced that it will extend gasoline subsidies until September 9th, local time.On August 25th, according to Russian sources, a Ukrainian drone attack injured two workers at the Zaporizhia nuclear power plant. The plants press office reported that the attack occurred near the plants hydraulic structures while workers in the maintenance and construction workshop were working. The report did not specify the exact time of the attack. It is understood that the target of the attack was personnel responsible for ensuring the operation of the nuclear power plant. Both injured workers have been hospitalized, one seriously. The power plant stated that it has informed experts from the International Atomic Energy Agency (IAEA) about the attack. Ukraine has not yet responded to this report.U.S. Treasury yields continued to decline, with the 10-year yield falling 6 basis points to 4.64%.The German DAX 30 index closed up 155.76 points, or 0.60%, at 26,274.75 on Tuesday, August 25; the UK FTSE 100 index closed up 33.60 points, or 0.31%, at 10,887.92 on Tuesday, August 25; and the French CAC 40 index closed down 13.81 points, or 0.16%, at 8,439.20 on Tuesday, August 25. The Stoxx 50 index closed up 10.77 points, or 0.17%, at 6458.75 on Tuesday, August 25; the Spanish IBEX 35 index closed down 33.01 points, or 0.16%, at 20065.59 on Tuesday, August 25; and the Italian FTSE MIB index closed up 209.82 points, or 0.40%, at 52752.00 on Tuesday, August 25.On August 25, a joint statement from Iran and Oman stated: "His Excellency Omani Foreign Minister Bousaidi, during a working visit to Iran, held constructive consultations with Iranian Foreign Minister Araqchi. The consultations focused on an issue of paramount importance to both countries: restoring safe navigation through the Strait of Hormuz while upholding their respective sovereignty and sovereign rights. Given the recent war and its disastrous consequences that have altered the current situation in the Strait, the two foreign ministers discussed a phased framework that can provide a practical and implementable foundation for moving the situation forward. The proposed framework includes establishing a temporary joint maritime passage through the Strait of Hormuz and agreeing to implement a joint mine-clearing project. Both sides will continue technical discussions with the aim of reaching an agreement on establishing a permanent maritime passage, future management of the Strait, and mechanisms for exchanging traffic management information and providing related maritime and security services. In this regard, both sides emphasized the need for joint dialogue with the littoral states of the Persian Gulf. They also stressed the necessity of adhering to applicable international law and respecting the sovereign rights of the littoral states."

USD/CHF Oscillates between 0.9330 and 0.9350 as the DXY Finds Support at 99.70

Drake Hampton

Apr 14, 2022 11:04

The USD/CHF pair is trading in a range of 0.9325-0.9356 as the US dollar index (DXY) seeks bids near 99.70 following a sharp decline on Wednesday. The asset is inching closer to its weekly high of 0.9370.

 

The pair is aiming higher as the probability of a Federal Reserve interest rate hike of 50 basis points (bps) increases (Fed). In May, the Fed will dictate monetary policy, and a rising US Consumer Price Index (CPI) combined with a tight job market increases the likelihood of an aggressive hawkish attitude for May and the remainder of the year.

 

Fed Governor Christopher Waller advocated for aggressive interest rate hikes in the future, but cautioned that aggressiveness should not be confused with abruptness, as this could push the US economy into recession. An rapid shift in interest rate policy will significantly lower aggregate demand and employment possibilities, posing a substantial danger to the US economy.

 

Investors' attention will now turn to monthly US retail sales, which are expected to come in at 0.6 percent, up from the previous figure of 0.3 percent. While the Swiss bourse will publish its annual Real Retail Sales report later this month. Previously, Swiss Real Retail Sales were registered at 12.8 percent during a 12-month period.

USD/CHF

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