- USD / CHF continues to fluctuate in a tight range.
- The US Dollar Index remains directionless around 90.50 on Wednesday.
- The focus shifts to the FOMC policy announcements and the dot plot.
After failing to stay above 0.9000 on Tuesday, the pair USD/CHF It closed in negative territory and appears to be having a difficult time regaining its traction on Wednesday. At time of writing, the pair was up 0.13% on the day at 0.8992.
The Fed is willing to leave policy settings unchanged
With investors staying on the sidelines ahead of the FOMC policy announcements, the US Dollar Index (DXY) continues to move sideways around 90.50 for the third day in a row. Meanwhile, Tuesday’s mixed macroeconomic data releases from the US did not provide a directional clue for the USD.
The Federal Reserve is expected to keep its policy setting unchanged after the June policy meeting. However, investors will closely monitor the Economic Projections Summary to see if there is a sea change in the outlook on rates from policy makers.
In anticipation of this event, “the average core inflation projections in 2022/2023 will likely increase slightly, in line with a significant revision for 2021 that is seen to largely reflect transitory factors,” analysts at TD Securities noted. “The midpoint will probably show a rate hike by the end of the 23rd. A less dovish tone from the Fed next week would help stabilize the USD in the very short term.”
Technical levels
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