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USD/CHF falls below 0.9140, while USD retreats ahead of US PMIs

  • US Dollar Falls Despite FOMC Minutes.
  • US preliminary manufacturing and services PMIs are estimated to grow steadily.
  • Market sentiment is bullish amid firm Fed rate cut bets.

The USD/CHF pair falls after facing selling pressure near 0.9140 in the European session on Thursday. USD/CHF is under pressure while the US dollar falls amid strong speculation that the Federal Reserve (Fed) will begin reducing interest rates from the September meeting. Market sentiment has improved due to firm Fed rate cut prospects.

S&P 500 futures have posted significant gains in the London session, suggesting a sharp increase in investors' risk appetite. US yields have plummeted as the Fed's firm rate cut bets constitute an unfavorable scenario for them. The 10-year US Treasury yield has fallen to 4.42%.

Investors remain confident that the Fed will return to policy normalization in September, even though officials' message in the Federal Open Market Committee (FOMC) minutes was clear that interest rates will rise. They will remain stable at their current levels until they gain greater confidence that inflation will decline sustainably to the desired rate of 2%.

The reason for investors' high confidence in a rate cut is that officials' commentary was based on stubbornly high inflation in the first quarter of this year. However, the Consumer Price Index (CPI) report for April showed that price pressures eased in line with estimates.

Meanwhile, investors await preliminary US May S&P Global PMI data, due at 13:45 GMT. Manufacturing and services PMIs are estimated to remain unchanged at 50.0 and 51.3 respectively.


Latest price today 0.9136
Today Daily variation -0.0021
Today's daily variation -0.23
Today's daily opening 0.9157
daily SMA20 0.9096
50 daily SMA 0.9058
SMA100 daily 0.8883
SMA200 Journal 0.8879
Previous daily high 0.9158
Previous daily low 0.9107
Previous weekly high 0.9103
Previous weekly low 0.8988
Previous Monthly High 0.9195
Previous monthly low 0.8998
Daily Fibonacci 38.2 0.9139
Fibonacci 61.8% daily 0.9126
Daily Pivot Point S1 0.9123
Daily Pivot Point S2 0.9089
Daily Pivot Point S3 0.9071
Daily Pivot Point R1 0.9175
Daily Pivot Point R2 0.9192
Daily Pivot Point R3 0.9227

Source: Fx Street

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