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Frances June industrial production figures will be released in ten minutes.Futures Commentary by Everbright Futures: Geopolitical tensions eased again, and overnight London spot gold rose 0.57%, while SHFE gold closed up 0.87%. The reopening of the Strait of Hormuz raised concerns, causing oil prices to fall rapidly. Additionally, the US June JOLTS job openings fell more than expected. Gold may maintain a bottoming-out trend in the short term, with attention focused on Fridays non-farm payroll data. On the macroeconomic front, US June JOLTS job openings fell to 7.36 million from 7.54 million in May, below the expected 7.45 million, indicating a relatively stable labor market. The president of the Philadelphia Fed, a 2026 voting member of the Federal Reserve, stated that he remains open to the direction of monetary policy, and whether core inflation can continue to decline is a key factor in his judgment. Geopolitically, US-Iran negotiations continued to release easing signals, and expectations for the reopening of the Strait of Hormuz increased. While the US-Iran geopolitical situation continued to ease, the US dollar weakened, and although gold performed relatively strongly, it still exhibited a weak bottoming-out trend, failing to give the market stronger confidence. This may stem from investors apprehension about the upcoming non-farm payroll data.Japans Topix index rose 2%.SpaceX shares fell 7% on Tradegate, roughly in line with its after-hours performance on the US stock market.On August 5th, the Shanghai Headquarters of the Peoples Bank of China (PBOC) held its 2026 second-half work conference on August 4th. The conference emphasized that the PBOC Shanghai Headquarters should earnestly implement the moderately loose monetary policy and actively encourage financial institutions to tap into effective credit demand. It should make good use of various structural monetary policy tools. It should implement the "Five Major Articles" (1+N) series of financial policies. It should promote the continued effectiveness of the "Technology Board" in the bond market in Shanghai. It should steadily deepen financial reform and opening up, and build a sound foreign exchange management system. It should implement new policies on high-level opening up of cross-border trade and investment financing, overseas lending, and overseas listing. It should enhance the exchange rate hedging capabilities of SMEs. It should coordinate the promotion of cross-border finance and offshore finance, and accelerate the implementation and effectiveness of the comprehensive reform pilot program for offshore business financial services. It should promote the application of digital RMB scenarios and the construction of its ecosystem. It should continue to carry out local legislation in the financial field. It should continuously improve the systemic risk prevention and mitigation mechanism. It should strengthen the crackdown on illegal financial activities. It should continuously improve the macro-prudential management mechanism framework. It should comprehensively improve the level of cross-border financial risk monitoring.

USD/CHF Steady at 1.0020 as DXY Pauses, Powell and US Retail Sales Take Center Stage

Daniel Rogers

May 16, 2022 10:46

The USD/CHF pair is bouncing within a small range between 1.0020 and 1.0030 in early Tokyo, as the US dollar index (DXY) is not gaining much traction due to Monday's light economic calendar. Although broad-based fundamentals continue to favor the dollar bulls, the Federal Reserve (Fed) is projected to raise interest rates by another significant number in June in an effort to limit the inflation issue.

 

Last week, Fed's Powell's interview with the national radio show Marketplace revealed the ongoing conversations among Fed policymakers regarding anticipated rate hikes in monetary policies. Fed Powell indicated that the Fed could declare two additional rate hikes in the next two consecutive monetary policy sessions in order to tame the soaring inflation.

 

In the meantime, the US dollar index (DXY) is poised between 104.46 and 104.60 after reaching a new 19-year high of 105.00 on Friday. The DXY appreciates the broader gains but requires further triggers to maintain strong. In the future, two significant events on Tuesday will keep investors occupied. First will be Fed Chairman Powell's speech, which will likely influence monetary policy action in June. The second significant event is the monthly US Retail Sales report, which is anticipated to increase by 0.7% from the previous reading of 0.5%.

 

In terms of the Swiss franc, Friday's Industrial Production data will be the focal point. The catalyst reached 7.3% the previous time. A greater-than-anticipated number will strengthen the Swiss franc against the U.S. dollar. 

USD/CHF

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