The US dollar / Swiss franc (USD / CHF) exchange rate started the new week on a negative note, falling 0.963 (-0.8% on the day) as of writing, even as demand increased. For the franc after the Swiss Nationa Bank scandal. currency gains last week and market turmoil, with the S&P 500 (US 500) setting new year -over -year lows last Friday.
Last week, we marked a second bearish trend in USD / CHF, with possible support of 0.955. The SNB, with the Bank of Japan as the only central bank, did not say it planned to raise prices until next week. past, increased Swiss franc sales flows. It was the SNB’s first high rise since 2007, after keeping its policy price at low lows of -0.75% since 2015, in order to prevent the big increase from spreading too much. Swiss goods and services.
SNB Captain Thomas Jordan also said the franc had not appreciated further and the Bank was ready to enter the market to prevent a currency collapse.
Note of the day: The USD/CHF will form a second bearish trend
Forex market today – 20 June 2022
Major financial institutions moved slightly as the U.S. market closed today for the 12th day of the June holiday.
The US dollar index (DXY) fell to 104.3 (-0.32%), providing some of the gains of the last session. While most Fed members (Kashkari, Waller, and Bostic) reaffirmed a 0.75 percent increase in the FOMC in July, economic forecasts weigh heavily on the greenaback these days.
The Federal Reserve revised growth for this year to 1.7% from 2.8% in March, and bulls have successfully offset lower retail sales, business activity, real estate, and Philadelphia statistics. Fed last week. The 10 -year U.S. stock was up 3.2%, up 3.5% from the previous week.
The focus is on Fed Governor Jerome Powell’s hearing at the conference on Wednesday and Friday of this week.
The currency is on the rise as concerns over the U.S. economy rise
French parliamentary elections were held over the weekend. For the first time since 1997, the elected president did not receive a majority of seats in the National Assembly. This will challenge the legal process in France and the problem of feeding political turmoil in the years to come, as Emmanuel Macron will have to seek support from the party. left or right.
The euro (EUR / USD) has not been affected by the adverse political outcome, in part because the US market was closed for the twelfth day of the June holiday, during which the EUR / USD rate was kept very low. USD. In European morning trading, the EUR / USD broke above the 1.05 mark, up 0.2% on the day.
The EUR / USD has regained to 1.05 levels with the end of the French election
The Australian (AUD/USD) and New Zealand (NZD) currencies are the best major currencies today, up two to 0.9 percent against the US dollar.
Reserve Bank of Australia Governor Philippe Lowe has said the board will do everything possible to keep inflation at bay, supporting demand for the Aussie. Hawkish’s views have boosted investors ’expectations for rapid growth in Australia and New Zealand, given the need to fight inflation and prevent capital depreciation, according to which is recognized by the Japanese yen.
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However, Australia’s income is higher, with the 2-year yield at 3.5 per cent and the 10-year low yield at around 4 per cent. The market is awaiting the release of the minutes from the June RBA meeting.
The AUD/USD rose amid the RBA’s hawkish comments
The British pound (GBP) began the new week with the country being challenged by railway workers, sparking the social unrest of the 1970s. GBP traders are waiting for May inflation data in the fall. On Wednesday, it was forecast to be the highest in 40 years at 9.1 percent year -over -year. The sterling (+0.1%) moved slightly at 1,225 against the currency.
The Japanese yen was flat today, with USD/JPY holding at 134.9.
The Canadian dollar (CAD) gained ground (+ 0.2% today), as recent losses in oil prices with WTI falling below $ 110 a barrel, as investors expect the rapid interest rate hike by the Bank of Canada, which is expected to respond to the Fed. .
The Norwegian krone (NOK) jumped 1.5%, fueled by recent gas unrest between Russia and Europe, which has raised speculation of an increase in gas from Norway.
Elsewhere, the Chinese yuan (CNH) welcomed the decision of the People’s Bank of China (PBoC) to keep policy rates unchanged, with USD/CNH falling to 6.685.