USD/CHF has been quite corrective and volatile recently ranging between 0.9850 to 0.9980 area with daily candles. Though USD has been the dominant currency earlier due to recent worse NFP report results, the bullish momentum has turned quite indecisive.
After the worse NFP report published last week, USD has been quite mixed with the economic reports this week which lead to more indecision and volatility in the market. Today USD Core PPI report was published unchanged at 0.3% which was expected to decrease to 0.2%, PPI report decreased to 0.3% from the previous value of 0.5% which was expected to be at 0.2% and Final Wholesale Inventories had negative result of increasing to 0.6% which was expected to be unchanged at 0.5%. Moreover, today FOMC Member Bostic is going to speak about the upcoming interest rate decisions and monetary policies which are expected to have a neutral impact on the USD gains.
On the CHF side, this week Unemployment Rate report was published with a slight decrease to 2.6% from the previous value of 2.7% which failed to meet the expectation of 2.5%. Though it failed to meet the expectations but managed to gain some momentum in the process. Additionally, this Friday CHF PPI report is going to be published which is expected to be unchanged at 0.2%.
As of the current scenario, USD has been struggling to keep the momentum going against CHF whereas CHF also failed to provide better than expected report to support its gains in the process. Though certain indecision is still there in the market but if USD fails to provide better economic results in the coming days, CHF may lead the way further in the future.
Now let us look at the technical view. The price is currently residing below 0.9980 to 1.0035 area from where it is expected to push lower towards 0.9850 and later towards 0.97 in the coming days. The price action is still quite volatile and corrective but as of the recent bullish rejections in the process, it is expected to push lower in the coming days.
The material has been provided by InstaForex Company – www.instaforex.com