USD/CHF Shows Consolidation Just Above 0.9000 Amid Market Uncertainty
USD/CHF Consolidates Above 0.9000
The recent upside momentum has stalled a little but the pair still clocked in three straight weekly gains coming into trading this week. The good news for buyers is that price is consolidating just above the 0.9000 threshold now. It's not entirely technically significant but is a good psychological checkpoint at least.
Market Uncertainty and Divergent Trades
Among all the major pairs, USD/CHF has the potential to be one of the more prominent divergent trades currently. The SNB has already kick started their rate cut cycle with a surprise move two weeks' back. Meanwhile, the Fed is arguably still somewhat caught in a 50-50 mode for a move in June now.
- If the jobs data this week remains strong and inflation numbers remain stubborn next week, that could cause some uneasiness in the existing market pricing.
- Coming into April, the odds of a June rate cut is ~72% priced in, highlighting the uncertainty of the market sentiment.
Conclusion: The path for USD/CHF largely hinges on economic data releases and central bank actions. Uncertainty in market sentiment and divergent policies of SNB and Fed could lead to trading opportunities in the near term.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.