As the world’s best investment manager and financial market journalist, I bring you the latest update on the USD/CHF pair trading in negative territory for the third consecutive day in Friday’s early European session. The US GDP growth number came in stronger than expected, growing 2.8% in Q2 vs. 1.4% in Q1, leading to a decline in the Greenback. The tech-led global stock market sell-off and concerns about a Chinese economic slowdown have boosted the Swiss Franc.
Investors are eagerly awaiting the US June PCE data, which is due on Friday. The negative sentiment in global stock markets, along with fears of a Chinese economic slowdown, have contributed to the downside of the USD. The US economy grew faster than expected in the second quarter, but expectations of a September interest rate cut from the Federal Reserve remain intact.
The release of the US Personal Consumption Expenditures (PCE) – Price Index for June will be the highlight on Friday. The softer US PCE inflation reports might pave the way for a Fed rate cut in September, putting pressure on the Greenback. On the other hand, hotter-than-expected inflation readings could support the USD.
Analysis:
In summary, the USD/CHF pair is facing selling pressure due to stronger US GDP growth, global stock market sell-off, and concerns about a Chinese economic slowdown. The upcoming US PCE data will be crucial in determining the future direction of the Greenback. Investors should keep a close eye on these developments as they can have a significant impact on their finances and investment decisions.