Tag: expectations

general

XAG/USD revisits weekly low near $49.50 as Fed rate hold bets remain firm

admin

The post XAG/USD revisits weekly low near $49. 50 as Fed rate hold bets remain firm appeared com. Silver price (XAG/USD) revisits the weekly low around $49. 50 during the European trading session on Friday. The white metal faces selling pressure as traders remain confident that the Federal Reserve (Fed) will not cut interest rates in the December policy meeting. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 basis points (bps) to 3. 50%-3. 75% in the December meeting is 35. 5%. The scenario in which the Fed holds interest rates steady bodes poorly for non-yielding assets, such as Silver. Fed dovish expectations stay lower as officials remain concerned over rising inflation risks to the upside. On Thursday, Cleveland Fed Bank President Beth Hammack stated that high is the “real issue” of the economy, adding that “inflation is still too high and trending in wrong direction”, which calls for the need to keep the monetary policy “somewhat restrictive”. Meanwhile, the rising United States (US) jobless rate has also failed to intensify Fed dovish expectations meaningfully. The US Nonfarm Payrolls (NFP) data for September showed on Thursday that the Unemployment Rate rose to 4. 4%. In Friday’s session, investors will focus on the flash US S&P Global Purchasing Managers’ Index (PMI) data for November, which will be published at 14: 45 GMT. Silver technical analysis Silver price struggles to hold the 20-day Exponential Moving Average (EMA), which trades around $49. 50. The 14-day Relative Strength Index (RSI) returns inside the 40. 00-60. 00 range, suggesting indecisiveness among investors about the near-term outlook. Looking down, the September 23 high of $44. 47 would remain a key support. On the upside, the all-time high of $54. 50 might act as key barrier. Silver daily chart Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular.

general

USD/CHF falls to near 0.7950 due to US-Swiss tariff deal, SNB steady

admin

The post USD/CHF falls to near 0. 7950 due to US-Swiss tariff deal, SNB steady appeared com. USD/CHF retraces its recent gains registered in the previous session, trading around 0. 7950 during the Asian hours on Tuesday. The Swiss Franc (CHF) gains against the US Dollar (USD) after Switzerland secured a deal to lower US tariffs to 15%, a significant drop from the 39% rate applied during the Trump administration. The development offers much-needed relief to a country that had been subject to the highest tariff levied on any developed economy. The Swiss Franc (CHF) could find further support on rising expectations that the Swiss National Bank (SNB) will maintain its 0% policy rate in December, supported by forecasts of higher inflation. SNB Vice President Antoine Martin recently reaffirmed the outlook, saying inflation is “expected to increase slightly.” The USD/CHF pair gained ground on Monday as the US Dollar (USD) advanced amid declining US Federal Reserve (Fed) rate cut bets for December. The CME FedWatch Tool suggests that financial markets are now pricing in a 43% chance that the Fed will cut its benchmark overnight borrowing rate by 25 basis points (bps) at its December meeting, down from 62% probability that markets priced a week ago. Federal Reserve Vice Chair Philip Jefferson noted Monday that risks to the labor market now outweigh upside risks to inflation, while stressing that the Fed should proceed “slowly” with any additional rate reductions. However, Fed Governor Christopher Waller said that the US central bank should cut the interest rates when policymakers meet in December. Waller added that he’s grown concerned over the labor market and the sharp slowdown in hiring. Swiss Franc FAQs The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the.
Sitemap Index