USDCHF Breaks Out
USDCHF has broken higher here following the June FOMC meeting yesterday which saw the Fed revising higher its dot plot forecasts, which now suggest 50bpp worth of hikes in 2023. 13 policy makers have now brought forward their target for the first hike to that point, up form just 7 in March. Furthermore, the upward revision in growth and inflation forecasts has increased tapering expectations across the rest of the year.
The SNB meeting today has added further support for the trade with the SNB confirming that it will maintain an easing presence in the market, despite the rising inflationary risks. With the SNB reaffirming its commitment to continuing its easing program and with the Fed now looking toward policy normalisation, there is plenty of scope for USDCHF to trade much higher here.
Technical Views
The breakout in the swissy as per the recent Market Spotlight is now underway. Price has broken above the .9043 level and with MACD and RSI bullish, is now on course to test the .9189 target. While above the .9043 level, the focus is on further upside in the near term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.