- US Dollar rebounds to one-month record highs on fading Fed cut hopes.
- Today US retail sales will be released and the Fed will hear speeches.
- The USD/CHF recovery could find resistance in the 0.8665 area.
The US dollar continues to advance after rallying 1.5% in the last five trading days. The pair has peaked in the mid-range of 0.8650 with investors reducing Fed rate cut expectations, ahead of the release of US retail sales figures.
Retail consumption is expected to have increased at a faster rate of 0.4% in December. This likely confirms that the US economy remains resilient and that the Fed still has work to do to bring inflation to its target.
After the release, attention will turn to speeches from Fed policymakers. New York Fed President John Williams and board member Michelle Bowman, traditionally hawks, as well as Vice Chairman Michael Bar, are likely to with a more neutral profile, share their views on the outlook for monetary policy.
A broader perspective shows the pair in a corrective recovery after having depreciated almost 10% in the last quarter of 2023. The pair is approaching the 38.2% Fibonacci retracement of the mentioned decline, at 0.8665, where it could find some sellers . Above here, the next target is 0.8720.
Supports are at 0.8575, the previous resistance zone, and at 0.8460.
Technical levels to monitor
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
