USD/CHF Forecast Today 03/9: Recovering Against CHF (Video)

2024-09-03 03:15:20

(MENAFN- Daily Forex)

The US dollar has rallied a little bit during the trading session on Monday against the Swiss franc.
As we continue to see this general vicinity, perhaps offer support. I do believe that the 0.84 level in the pair is a hard floor in the market, and it will be an area that buyers will be interested in.
Short-term pullbacks, I think, are going to end up being buying opportunities.

Going Forward

With that being the case, I think you have to look at this as a market you have to be very cautious with. And with that situation, then I think you're looking for value on these dips. Keep in mind, this is a pair that tends to be very quiet and choppy most of the time. I think that will continue to be the case, but we may get a little bit of volatility due to the fact that the Federal Reserve is likely to cut rates in September. I think people are starting to really start to question how many rate cuts there are going to be. We got way ahead of ourselves in the Fed funds futures markets, pricing in a hundred basis points between now and New Year's, which is probably a bit too much.

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That being said, the interest rate difference between the United States and Switzerland continues to favor the greenback. And as we've seen the carry trade come back to life a little bit over the last couple of days in the Japanese yen.

We may very well see it against the Swiss Franc as well, certainly with other currencies, but if the U S dollar can rise against the Swiss Franc, even if you don't trade this pair, you might want to take a look at the British pound against the Swiss Franc, the Australian dollar against it, or possibly even the New Zealand dollar. All things being equal. It looks like we are trying to put it on the floor.

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