This is due to the positive correlation of the euro, Swiss franc and the British pound. WTI Oil is rebounding off four-month lows on renewed expectations the Fed may cut interest rates by 50 bps. Supply closures from Hurricane Francine which is ravaging the Gulf of Mexico are another bullish factor. WTI is forming short-term bullish reversal patterns on the daily and weekly charts. Together with the close price, this chart displays the minimum and maximum forecast prices collected among individual participants. The result is a price corridor, usually enveloping the weekly close price from above and below, and serves as a measure of volatility.

A Possible Breakdown From 13 Years Consolidation Pattern

1. The labor market’s recent performance, which has cast doubt on the need for an aggressive 50-basis point cut, adds complexity to this situation.
2. When sentiment is not at extremes, traders get actionable price targets to trade upon.
3. A continued drop in reserves might indicate that the SNB is less willing or able to weaken the franc, potentially paving the way for CHF appreciation.
4. The Forecast Poll is a sentiment tool that highlights near and medium-term price expectations from leading market experts.
5. Its primary goal is to ensure price stability, while taking due account of economic developments.
6. It is an international financial institution owned by central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks”.

In conclusion, the USD/CHF pair continues to face significant downward pressure, driven by the weakening U.S. dollar amidst softening Treasury yields and expectations of a more accommodative Federal Reserve policy. The Swiss franc, benefiting from its safe-haven status, remains strong in times of global uncertainty, further intensifying the bearish outlook for USD/CHF. With the pair approaching long-term support levels, the potential for a major decline looms, particularly if the U.S. dollar remains under pressure. While a brief rebound may occur, strong resistance levels are likely to cap any upward movement, maintaining the long-term bearish momentum in the USD/CHF market.

He employs his technical background to challenge the prevalent assumptions and profit from misconceptions. By displaying three central tendency measures (mean, median, and mode), you can know if the average forecast is being skewed by any outlier among the poll participants. This measure is basically an arithmetical average of the three central tendency measures (mean, median, and mode). It smooths the typical outcome eliminating any possible noise caused by outliers.

USD/JPY setting up for a bear market bally into the Fed

On the other hand, developments in Switzerland suggest a potential easing of monetary policy by the SNB. Inflation in Switzerland has dropped to a five-month low, fueling speculation about another rate cut by the SNB. While the Fed’s potential dovish stance may weaken the USD, a rate cut from the SNB could limit CHF gains, possibly stabilizing the USD/CHF exchange rate. The chart below illustrates the long-term inflation trend in Switzerland, showing that inflation has been on a general downward trajectory over the long term.

USD/CHF continues to weaken as the US dollar remains under pressure, with US Treasury yields continuing to decline. The decline in U.S. yields signals investor expectation of a softer monetary policy from the Federal Reserve (Fed). The decline in Switzerland’s foreign currency reserves suggests that the SNB may have limited room for further intervention in the currency markets, which could allow the CHF to strengthen naturally. A continued drop in reserves might indicate that the SNB is less willing or able to weaken the franc, potentially paving the way for CHF appreciation. If the SNB scales back its interventions, the franc could gain momentum, especially as the U.S. dollar faces pressure from the Fed’s dovish stance. The Bank for International Settlements (BIS) is also an organization to take into account when trading the Swiss Franc.

About U.S. Dollar / Swiss Franc

It is a sentiment indicator which delivers actionable price levels, not merely “mood” or “positioning” indications. Traders can check if there coinmama exchange review is unanimity among the surveyed experts – if there is excessive speculator sentiment driving a market – or if there are divergences among them. When sentiment is not at extremes, traders get actionable price targets to trade upon. When there is deviation between actual market rate and value reflected in forecasted rate, there is usually an opportunity to enter the market. Gold preserves its bullish momentum and trades near $2,580 after setting a new record-high slightly above this level. The 10-year US Treasury bond yield stays in the red below 3.7% as markets reassess the odds of a large Fed rate cut, helping XAU/USD push higher.

Latest Swiss Franc Analysis

The central bank of the Eurozone (the ECB, European Central Bank) also has influence on the Swissie due to the importance of business and trade between the EU and Switzerland. Bitcoin trades above $58,000 at the time of writing, adding 2% to its value this week. Ethereum hovers around $2,300 as WazirX exchange exploiter moves 5,000 Ether to a new wallet address and a crypto mixer. The USD/CHF pair can also be impacted by the moves of other currencies, in particular, the Euro and Yen for being a prominent commercial partner and major currencies too. Muhammad Umair, PhD is a financial markets analyst, founder and president of the website Gold Predictors, and investor who focuses on the forex and precious metals markets.

Its primary goal is to ensure price stability, while taking due account of economic developments. As the price approaches this long-term support, a potential rebound may be triggered, but it is likely to be capped by the resistance due to the strong bearish price development. As long as the price remains below $1.02, the long-term bearish pressure is likely to persist. Additionally, the U.S. experienced high inflation and economic instability during the 1970s, particularly driven by the 1973 oil crisis, which weakened the dollar. On the other hand, Switzerland’s economy remained stable, with low inflation and a strong financial sector, making the Swiss franc a preferred safe-haven currency.

The Swiss National Bank (SNB)

After the 2001 dot-com bubble burst and the 9/11 attacks, the U.S. economy faced significant challenges, leading to low interest rates and a weaker dollar. The global financial crisis of 2008 exacerbated the situation, as investors flocked to the Swiss franc for its perceived stability during periods of uncertainty. Furthermore, U.S. monetary policy during this time, including aggressive quantitative easing programs, further devalued the dollar. In contrast, Switzerland maintained low inflation and a stable economy, contributing to the USD/CHF decline throughout the decade. The SNB recently lowered its policy rate by 25 basis points to 1.25% in June 2024, a move that aligned with market expectations due to shakepay review falling inflation and the strong performance of the Swiss franc.

Despite the lower reading in the headline inflation figure for the US, core inflation showed a slight uptick on a monthly basis. This unexpected increase caught markets off guard, as many were anticipating a further decline in inflation, potentially paving the way for a 50 basis point rate cut from the U.S. Federal Reserve and its Federal Open Market Committee (FOMC) in the coming week. The labor market’s recent performance, which has cast doubt on the need for an aggressive 50-basis point cut, adds complexity to this situation. This scenario would likely push the USD/CHF pair lower, especially as the Swiss Franc (CHF) tends to strengthen when global economic uncertainty increases. The second major historical drop is observed from 1985 to 1987 which was largely driven by the coordinated efforts of major economies to weaken the U.S. dollar, known as the Plaza Accord of 1985.

The strength of the Swiss franc is evident in the chart below, which shows the percentage change in price for major Swiss pairs during the 21st century. It is observed that the Swiss franc has outperformed major currencies, with USD/CHF down by 46.70%, EUR/CHF down by 41.73%, and GBP/CHF down by 56.80%. These figures indicate a strong Swiss franc and a bearish trend for these pairs, reflecting CHF’s continued strength. The Swiss franc is the only franc left in Europe after the rest joined the euro.

It is an international financial institution owned by central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks”. It also provides banking services, but only to central banks and other international organizations. The Forecast Poll is a sentiment tool that highlights near and medium-term price expectations from leading market experts.

USD/JPY remains under some selling pressure on Friday and hits a fresh YTD low. The divergent Fed-BoJ policy expectations continue to weigh heavily on the pair. Investors look to Fed and BoJ meetings next week for a fresh directional impetus. The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. As a state regulatory body, FINMA is endowed with supreme authority over banks, insurance companies, stock exchanges, securities dealers and collective investment schemes.