USD/CHF Stuck at 0.8100, Eyes on Powell
USD/CHF pared daily gains on Friday (August 22nd). The rebound from Thursday's low of 0.8025 stalled at the 0.8100 resistance level, but the pair remains above the previous weekly high of 0.8090. The market awaits Fed Chairman Jerome Powell's speech in Jackson Hole.
Investors are looking for signs of a change in Powell's tone. Earlier this month, a surprise NFP reading rocked the market, followed by a soft CPI, which raised bets for imminent easing. However, recent data showed rising factory-gate prices and strong manufacturing and services activity, signaling a resilient economy and casting doubt on Powell's speech.
Fed officials' comments were mixed. Beth Hammack (Cleveland Fed) highlighted inflation risks from tariffs, while Susan Collins (Boston Fed) left open the option of a September rate cut amid the risk of a weakening labor market. As a result, the Fed's discretionary power remains open.
From Switzerland, the data calendar is light, but industrial production showed a contraction, the trade surplus narrowed, and exports fell 2.7%. This pressure adds to speculation of further easing by the SNB, which has recently weighed on the CHF and helped USD/CHF hold its position at a high level. (ayu)
Source: Newsmaker.id
