DailyBubble News
DailyBubble News

Overnight, eyes were focused on Fed Chair Jerome Powell’s testimony to Congress and it seems that the latest signs of softness in the US labour market has prompted some dovish change in tone.

The latest Federal Reserve Chair Jerome Powell’s testimony to Congress has signaled a possible shift towards a more dovish tone, with the acknowledgment of softness in the US labor market. This has raised expectations of a potential rate cut in the near future. The US dollar saw a slight increase (+0.1%) as the market anticipated more clarity on a rate cut in September. However, with important US inflation data on the horizon, Powell chose to remain cautious.

Looking at the USD/CHF pair, it is currently trading within a near-term channel, with resistance encountered at the upper channel trendline. To gain control, buyers will need to break above the key resistance at the 0.907 level, where the channel resistance and daily Ichimoku Cloud converge. The downward bias may persist as the daily MACD struggles near the zero-mark. Trading within the channel could lead to a potential decline towards the 0.883 level, where the lower channel trendline support is situated.

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