Will the US CPI break the day long range in Swissie?
In a few hours, we’ll see the U.S. CPI report for the month of August.
Word around is that we’ll see much higher headline numbers thanks to higher oil prices, but that core CPI may see some pullback from its 4.7% y/y July reading.
If core consumer prices don’t decelerate fast enough for the markets, or if the headline CPI comes in WAYYY higher than expected, then we could see more USD bulls come in as traders price in another rate hike or at least a prolonged period of high interest rates from the Fed.
USD/CHF could bust above its days-long range and head for previous areas of interest like .8950 or .8990.
I’m not ruling out a buy-the-rumor, sell-the-news situation though.
If traders focus on a possibly weaker core CPI reading, then we may see some profit-taking from all the USD buying from the previous days.
USD/CHF could find resistance from the .8930 range resistance level that is also near the R1 of the 15-minute chart’s Pivot Point levels.
The pair could drop to the .8920 mid-range zone or head for the .8900 major inflection point depending on the dollar’s momentum.
What do you think? Which economic reports will traders focus on? More importantly, which way will USD trade after today’s release?
Word around is that we’ll see much higher headline numbers thanks to higher oil prices, but that core CPI may see some pullback from its 4.7% y/y July reading.
If core consumer prices don’t decelerate fast enough for the markets, or if the headline CPI comes in WAYYY higher than expected, then we could see more USD bulls come in as traders price in another rate hike or at least a prolonged period of high interest rates from the Fed.
USD/CHF could bust above its days-long range and head for previous areas of interest like .8950 or .8990.
I’m not ruling out a buy-the-rumor, sell-the-news situation though.
If traders focus on a possibly weaker core CPI reading, then we may see some profit-taking from all the USD buying from the previous days.
USD/CHF could find resistance from the .8930 range resistance level that is also near the R1 of the 15-minute chart’s Pivot Point levels.
The pair could drop to the .8920 mid-range zone or head for the .8900 major inflection point depending on the dollar’s momentum.
What do you think? Which economic reports will traders focus on? More importantly, which way will USD trade after today’s release?
TP2: 0.91