We may not have a busy data calendar as we’ve had in the past few days but that doesn’t mean that traders will take a chill pill.
Check out what’s happening on USD/CHF’s 1-hour chart!
Before moving on, ICYMI, yesterday’s watchlist checked out a key area of interest on AUD/USD after Australia’s jobs data was released. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
BoE votes 8-1 to raise UK interest rates to 0.25% from 0.1%
BOE forecasts inflation to peak at 6% in April 2022
ECB to slow down Pandemic Emergency Purchase Program (PEPP) buys until it ends in March but temporarily double its Asset Purchase Programme (APP) purchases to aid transition
ECB sees inflation at 2.6% (from 2.2%) in 2021, 3.2% (from 1.7%) in 2022, and then 1.8% (from 1.5%) in 2023 and 2024Lagarde: “very unlikely” that ECB will raise rates in 2022
US initial jobless claims up by 18K to 206K (vs. 196K expected)
US industrial production up by another 0.5% in Nov (from 1.7% in Oct) as output hits its highest levels since Jan 2019
US Markit manufacturing PMI hits 12-month low at 57.8 in Dec (58.3 in Nov)
US Markit services PMI dips to 3-month low of 57.5 (58.0 in Nov)
BOJ to return corporate bond and commercial paper purchases to pre-pandemic pace starting Apr 2022, extends loan scheme for small companies by six months to Sept
Black Friday and Christmas shopping boosts UK retail sales by 1.4% in Nov (+0.8% expected)
GfK: Omicron and high inflation drag UK consumer sentiment from -14 to -15 in Dec
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s final CPI numbers at 10:00 am GMT
BOE’s quarterly bulletin at 12:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: USD/CHF
No top-tier report will be published today which means that the major currencies will likely take cues from risk sentiment.
If you recall, the dollar did NOT get support from the news that the Fed would step up its tapering and maybe raise its rates at least three times next year.
What’s up with that?!
All the buy-the-rumor, sell-the-dollar flows got USD/CHF trading 100 pips lower at .9175, which lines up with a key support from early December.Will traders go back to buying the Greenback before the week ends?
A clear bounce from USD/CHF’s current levels opens the pair to a move to the .9225 mid-range or the .9270 range resistance levels.
If the dollar-selling party extends to today’s U.S. session trading, however, then we could see USD/CHF break below its weeks-long range and revisit areas of interest like .9150 or .9100.
USD/CHF’s daily average volatility tells me that the pair could still see a 50-pip move in either direction so y’all best be on your toes in case we see a catalyst before the week ends!