USD/CHF Moves Narrowly, Market Awaits New Trigger
The USD/CHF pair fluctuated around 0.8050, after a reversal from Wednesday's peak of 0.8090 stalled above 0.8020. This means the price remains trapped within a narrow 70-pip range (0.8020–0.8090) that has persisted for more than a week.
This Thursday, trading interest tends to be cautious with relatively thin volume. The release of preliminary US PMIs and jobless claims tonight could provide direction for the US dollar, but the chances of breaking through the range before Powell's speech on Friday are considered limited.
Fed Chairman Jerome Powell will speak in Jackson Hole amid political pressure for interest rate cuts. The market is eager to see if weak US labor market data earlier this week is enough to convince the Fed to consider a rate cut in September. Powell's tone is expected to determine the short-term direction of the US dollar.
In Switzerland, the franc weakened after the July trade surplus narrowed to CHF 4.59 billion from CHF 5.79 billion the previous month, driven by a 2.7% decline in exports ahead of the imposition of new trade tariffs by the US. This less-than-encouraging data also limited CHF gains. (ayu)
Source: Newsmaker.id
