USD/CHF Bullish Sentiment Prevails With Long-Term US Outlook Positive

June 25, 2021 Off By admin-445

The USD/CHF trading pair of late rising above the crucial $0.92 mark. It did fall back to the $0.9170 level at close yesterday but overall, the indicators remain bullish. Although US unemployment figures came up higher than expected, the long term outlook for hiring remains positiveThe trading pair has been in continued ascendancy of late where it rose to the $0.92 level on June 23 from a low of $0.89 on June 16. This impressive gain came on the back of strong US jobs data as well as Jerome Powell’s dovish statements which reassured traders on possible spikes in inflation.USD/CHF – Main Factors in PlayAmongst the factors in play here is the fact that the Fed is one of the few central banks with a timetable to exit its monetary policy. The US is also on a hiring spree as jobs continue to increase and unemployment falls. The Fed is also looking at tapering its bond-buying programme, while growth and inflation are on the rise.The Fed’s dovish policy should be able to keep the latter well under control though. There are also rising expectations for a Fed rate hike in the short term. All these factors will undoubtedly prove positive for the USD/CHF trading pair.EU Summit Conclusions – Will They Affect the USD/CHF PairToday’s EU summit conclusions are likely to continue focusing on an exit strategy for Covid19. Whilst Switzerland is not in the EU, it is largely trading with the continent. It also depends on much of its travel business from there.If restrictions continue, this will probably drag negative sentiment onto the pair although that may be tempered by more positive news from the US. With the continued success of the vaccination programme that has picked up considerably in the EU, the CHF could move stronger as more trading possibilities are opened up.Price forecast: Retesting of 0.92 level possibleAlthough the USD/CHF pair retreated slightly at market close, overall indications remain bullish. Another retest of the 0.92 level is possible, especially if US economic data continues to be strong. Possible influences include President Biden’s compromise with the US Senate on the $1 trillion infrastructure plan. This could see a further strengthening of the dollar.On the CHF side, a further reopening of the economy and relaxation of restrictions are also factors to keep in mind.Looking to trade forex now? Invest at eToro!67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Source: www.forexcrunch.com