USDCHF Ahead of FED
The main agenda on today’s calendar is the interest rate decision in the United States. The United States Federal Reserve is highly expected to ease monetary policy for the third, consecutive time this year from 2% to 1.75%.
Today, the ADP Nonfarm payroll report was ahead of expectations – 125K.
GDP is also better than expected, although at a low level of 1.9%.
Unemployment took an unexpected drop to 3.5% for the month of September, but the forecast, to be released on November 1st is 3.6%.
On the downside, CB Consumer confidence was sour, Retail sales declined, Average Hourly earnings eased and Core Consumer price Index also declined.
The 25-basis point rate cut to 1.75 is widely expected and also priced in. Investors are expecting a hawkish statement to accompany the easing which may be bullish for the USD.
Switzerland released the KOF Leading Indicators Index, which is designed to predict the direction of the economy over the following six months. A bullish fact was released at 94.7, ahead of forecast 93.9. As a result, CHF gained against the USD. On a 4H time frame, the pair stopped at the 200EMA which coincides with the top of the Ichimoku Cloud as support around 0.99186. Upbeat employment and GDP figures from the United States brought the price back up to the 23.6% Fibo and now the pair is trading around 0.99192.
We now await the FED.
Resistance is around: R1 23.6% Fibo 0.99394, R2 0.99702, R3 0.99907
Support is around: S1 50% Fibo 0.99049, S2 61.8% Fibo 0.98894
Today, the ADP Nonfarm payroll report was ahead of expectations – 125K.
GDP is also better than expected, although at a low level of 1.9%.
Unemployment took an unexpected drop to 3.5% for the month of September, but the forecast, to be released on November 1st is 3.6%.
On the downside, CB Consumer confidence was sour, Retail sales declined, Average Hourly earnings eased and Core Consumer price Index also declined.
The 25-basis point rate cut to 1.75 is widely expected and also priced in. Investors are expecting a hawkish statement to accompany the easing which may be bullish for the USD.
Switzerland released the KOF Leading Indicators Index, which is designed to predict the direction of the economy over the following six months. A bullish fact was released at 94.7, ahead of forecast 93.9. As a result, CHF gained against the USD. On a 4H time frame, the pair stopped at the 200EMA which coincides with the top of the Ichimoku Cloud as support around 0.99186. Upbeat employment and GDP figures from the United States brought the price back up to the 23.6% Fibo and now the pair is trading around 0.99192.
We now await the FED.
Resistance is around: R1 23.6% Fibo 0.99394, R2 0.99702, R3 0.99907
Support is around: S1 50% Fibo 0.99049, S2 61.8% Fibo 0.98894
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