ForexEzy
No Result
View All Result
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
No Result
View All Result
ForexEzy
No Result
View All Result
Home Forex Market Commentary

USD/CHF: Dollar Gains Ahead of the FOMC Meeting

by Chintan Patel
March 16, 2021
in Forex Market Commentary
0
USD/CHF: Dollar Gains Ahead of the FOMC Meeting
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter
  • The FOMC may reconsider its stance against raising interest rates in its March 2021 meeting.
  • The $1,400 stimulus checks may be spent on cryptocurrencies and the purchase of stocks.
  • Switzerland intends to increase its bilateral engagements with China, especially in digital finance.

The USD/CHF trading pair has grown 4.49% in the month leading to March 16, 2021, after the 2.9% contraction of the Swiss economy in 2020. The decline was still light as economists had predicted a 3.3% contraction. Major European economies like Germany narrowed 5% while France declined by 8.3%. This decrease has caused the EUR/USD pair to move 2.45% lower in the same period owing to increasing US bond yields.

The Federal Open Market Committee (FOMC) is expected to meet on March 16 and 17, 2021 following a successful package of the $1.9 trillion stimulus package by the Biden Administration. The question of raising interest rates may come sooner than expected, seeing the $1,400 payments may have a direct impact on inflation.

Inflation close to 2%

Inflation is likely to hit the FOMC’s target of 2% in 2021. The US unemployment rate may also fall to the desired target of 4% from 6.2% recorded in February 2021. Passage of the stimulus plan in 2020 led to the decline of unemployment from the annual high of 14.7% in Q1 2020 to 6.7% in Q4 2020. 

unemployment rate

Biden’s stimulus plan contains an extension of the $300 weekly unemployment benefits expected to reach millions of Americans. Also included is the vaccine distribution fund totaling $14 billion. An additional $130 billion was set aside for in-person learning in primary and secondary schools. The President intends to complete at least a single dosage administration for all Americans by May 31, 2021, a move that will clear systems for full reopening in Q3 2021. According to the Centers for Disease Control and Prevention (CDC), close to 94 million doses have been issued, with those fully vaccinated reaching 32.9 million. 

Stimulus checks expenditures

More Americans are likely to spend their $1,400 stimulus checks on Bitcoins and the purchase of stocks. According to a market survey, out of the $380 billion sent out as direct checks, $40 billion (almost 10%) will be allotted to stocks and cryptocurrencies. We expect to see growth in US stocks as bond yields fall.

Swiss rates may remain negative

The Swiss National Bank (SNB) is expected to meet on March 25, 2021, and the policy rate may remain -0.75% (the world’s lowest interest rates). The rates have been constant since 2015. The consumer price index (CPI) increased slightly in February 2021 to 100.22 from the previous monthly reading of 100.06. The CPI in March 2020 stood at a high of 100.8 before the country went into lockdown. The Producer price index (PPI) also rose to 100.26 in January 2021 from 100 a month before.

switzerland - consumer price index

To speed up its economic progress, Switzerland intends to capitalize on the trade fallout between the US and China by opening a colossal market with the latter. Both China and Switzerland are building cryptocurrency reserves for their financial market. This move may provide a correlation to the free-trade agreement existing between these two countries. The digital central banks for the two countries may be a new frontier for blockchain technology since their mode of operation transcends decentralization.  

Technical analysis

USD/CHF Analysis Chart

USD/CHF Analysis Chart

The pair has broken strong support at 0.92760 and may push towards 0.92742. However, the pair still targets 0.93202, with the 200-day EMA offering a buy option at 0.9261. The 14-day RSI supports a sell position at 41.012. We expect to see the pair retest support at 0.93000 as Americans continue receiving the direct stimulus checks.

The Best Forex Robots Report Is Already Here!
Check out 30+ best expert advisors with daily updated live results and statistics.
ShareTweet
Previous Post

Red Hawk Review

Next Post

Why You Should Never Choose Forex Broker Trading Bonuses

Related Posts

Bitcoin Price Prediction After the Hawkish Fed Decision

Bitcoin Price Prediction After the Hawkish Fed Decision

by Chintan Patel
January 27, 2022
0

The Bitcoin (BTCUSD) price erased some of the gains made earlier this week as the market reacted to the latest...

USDJPY Range Bound Below 114.00 as NZDUSD Sell-off Persists Below 0.6700

USDJPY Range Bound Below 114.00 as NZDUSD Sell-off Persists Below 0.6700

by Adam Stanley
January 25, 2022
0

US dollar strengthens to two-week highs.USDJPY bounces off one-month lows.NZDUSD sell-off persists. The US dollar bounced back to two-week highs...

USDJPY Forecast as BoJ Retains Interest Rates

USDJPY Forecast as BoJ Retains Interest Rates

by Tim Baudin
January 18, 2022
0

Bank of Japan retains interest rates at -0.1%.US Treasury yields are still rising, thus helping cushion the dollar.Rising oil prices...

Market Analysis: AUDUSD Breakout Looms and USDJPY Tanks on Dollar Weakness as Oil Prices Rally on Supply Concerns

Market Analysis: AUDUSD Breakout Looms and USDJPY Tanks on Dollar Weakness as Oil Prices Rally on Supply Concerns

by Chintan Patel
January 17, 2022
0

US Dollar under pressure after a pullback.AUDUSD breakout looms on dollar weakness.USDJPY bounce back stalls.Oil prices rally on supply concerns.Cryptocurrencies...

GBPUSD Forecast After Strong UK GDP Data

GBPUSD Forecast After Strong UK GDP Data

by Chintan Patel
January 14, 2022
0

The GBPUSD price bullish momentum accelerated on Friday after the strong UK GDP numbers. The pair surged to 1.3737, which...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Best Forex Automated Systems

  • TechBerry 9/10
  • Happy Galaxy 8.5/10
  • Forex Cyborg 8.5/10
  • Forex Fury 8/10
  • FXgoodway 7.5/10

Best Crypto Bots

  • Bitsgap 9/10
  • Cryptohopper 8.5/10
  • Pionex 7.5/10

Top Trading Markets

We are dedicated to demystify the world of forex trading for you – no matter what level you are on.

Categories
  • Automated Trading
  • Cryptocurrency Trading
  • Day Trading
  • Forex Basics
  • Forex Brokers
  • Forex Education
  • Forex Forecasts
  • Forex Indicators
  • Forex Market Commentary
  • Forex Robots
  • Forex Signals
  • Forex Tools
  • Forex Trading Strategies
  • Forex VPS
  • Fundamental Analysis
  • Managed Accounts
  • Money Management
  • News
  • Risk Management
  • Social Trading
  • Technical Analysis
  • Top World Traders
  • Trading Apps
  • Trading Psychology
  • Uncategorized
Tags
arbitrage atr Avalanche AVAX Coin bollinger bands cci chart patterns classics copy trading courses Crypto day trading forex brokers forex charts forex ea forex education forex forecasting Forex Indicators forex software reviews grid trading hedging ichimoku macd market cycles news trading oscillators Polkadot price action trading rsi social trading SOL Solana strategies tips & tricks trading bots trading platforms trend trading Video
  • Terms of Use
  • Privacy Policy
  • Compensation Disclosure
  • Risk Disclosure
  • About Us
  • Contact Us

Copyright © 2022 by ForexEzy.com

No Result
View All Result
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts

© 2022, Forexezy.