The
USDCHF
has been rising for several days as the market has continually pushed up the Fed's projected rate hikes, sending the dollar higher against everything.
The FOMC was expected to hike by 50 basis points, but now the market expects 25 more. A 75 basis hike would be more than any other major central bank and would indicate the central bank's willingness to tackle inflation more aggressively.
Meanwhile, the Swiss National Bank is unlikely to make any changes to its policy at this week's meeting, even if inflation has been on the ascendency. The SNB will want to wait for the European Central Bank to make its move first before potentially tightening it. This means that the disparity between the SNB and Fed's policies will diverge further in the coming months, providing more support for the USD/CHF.
With rates now above 1.000, a break out to a new high for 2022 looks favourable from here. Watch out for a continuation towards the Fibonacci extension levels shown on the chart.
By Fawad Razaqzada.
USDCHF
has been rising for several days as the market has continually pushed up the Fed's projected rate hikes, sending the dollar higher against everything. The FOMC was expected to hike by 50 basis points, but now the market expects 25 more. A 75 basis hike would be more than any other major central bank and would indicate the central bank's willingness to tackle inflation more aggressively.
Meanwhile, the Swiss National Bank is unlikely to make any changes to its policy at this week's meeting, even if inflation has been on the ascendency. The SNB will want to wait for the European Central Bank to make its move first before potentially tightening it. This means that the disparity between the SNB and Fed's policies will diverge further in the coming months, providing more support for the USD/CHF.
With rates now above 1.000, a break out to a new high for 2022 looks favourable from here. Watch out for a continuation towards the Fibonacci extension levels shown on the chart.
By Fawad Razaqzada.