The USD/CHF pair has moved above the immediate hurdle of 0.9940 in the Tokyo session. The risk-sensitive currencies have sensed a minor selling interest as the USD Index (DXY) is displaying wild movements in the early trade. It would be early to say that the risk profile is changing as the volatility in the US Dollar arrived is not backed by any fundamental catalyst.
The returns on US Treasury bonds have trimmed further as investors are not expecting the continuation of a bigger rate hike regime by the Federal Reserve (Fed). The 10-year US Treasury yields have dropped below 3.67% and are expected to display more weakness ahead. Meanwhile, S&P500 futures are displaying some signs of further advances as expectations of a slowdown in policy tightening measures promise an improvement in economic projections ahead.
The golden days of the US Dollar have reached endgame as the United States Consumer Price Index (CPI) has already peaked and has displayed signs of exhaustion. It would be optimal to remain a little cautious as the recent decline in price pressures in the October inflation report is a one-thing thing. Therefore, confidence could get firmer only by a spree of the same.
Going forward, a rough session could be witnessed by the market participants as investors would adjust their extended overnight positions on Friday after a holiday on Thursday on account of Thanksgiving Day.
On the Swiss Franc front, investors are awaiting the release of Friday’s Employment data for the third quarter. The economic data is seen higher at 5.331M than the prior release of 5.316M. An upbeat employment data would support the Swiss National Bank (SNB) to stick with its expansionary policy approach.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.