USD/CHF keeps wavering around 0.8050, awaiting fundamental triggers
The US Dollar reversal from Wednesday’s highs around 0.8090 against the Swiss Franc has been contained right above 0.8020, which leaves the pair moving back and forth within the 70-pip range where it has been trapped for more than seven days.
Investors are showing a cautious mood on Thursday, with volumes at relatively low levels. Later today, the US preliminary PMI and Jobless Claims figures might provide some guidance to the US Dollar. Still, the pair is unlikely to break the channel´s boundaries ahead of Fed Powell’s speech on Friday.
The Federal Reserve Chairman will speak at the Jackson Hole symposium amid renewed political pressure to lower interest rates. The market wants to see whether the weak labour market data seen earlier this week has convinced the Fed chief to consider a rate cut in September. Powell’s comments are likely to set the US Dollar's near-term direction.
The Swiss Franc is on its back foot on Thursday, weighed down by uninspiring trade figures. The Swiss trade surplus narrowed to 4.59 billion in July from 5.79 billion in the previous month, led by a 2.7% decline in Exports ahead of the introduction of Trump’s trade tariffs.
source: Fxstreet
