USD/CHF Plummets to 0.8800, Decline of 0.48% as Markets Anticipate Fed and SNB Rate Cuts
In a recent trading session, the USD/CHF pair continued its downward trend, closing at 0.8800 with a 0.48% decline. This drop comes despite the strong US GDP growth of 2.8% year-on-year, surpassing market expectations. The market is now looking towards potential rate cuts from both the Federal Reserve and the Swiss National Bank in September.
The US GDP showed robust expansion in the second quarter, exceeding the projected 2% growth. Additionally, Initial Jobless Claims improved, but Durable Goods Orders saw a significant decline of 6.6% in June.
Looking ahead, the CME Fedwatch Tool indicates a high likelihood of a rate cut in September, with expectations for a third cut from the SNB as well.
Technical Analysis and Outlook
The technical outlook for USD/CHF remains neutral-bearish, with the pair trading below key moving averages and technical indicators in negative territory. Support levels are now at 0.8750 and 0.8730, while resistance levels are at 0.8800, 0.8830, and 0.8850.
In summary, the USD/CHF pair is facing downward pressure amidst expectations of rate cuts from central banks. Investors should monitor key support and resistance levels for potential trading opportunities in the coming weeks.