The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial.
USD/CHF targets lower levels
2019-12-12 • Updated
SELL 0.9820; TP1 0.9800; TP2 0.9740; SL 0.9835
USD/CHF continues its December descent. The pair’s attempt to return above the 0.9845 area (September and October lows, 50% Fibonacci retracement of the August-October advance, 200-week MA) has failed. The pair may have shifted to a lower range. The closest target on the downside lies around 0.9800 (61.8% Fibo). If the United States and China fail to find common ground in trade talks and new tariffs kick in, the decline to 0.9740 (78.6% Fibo) will be very likely.
The odds of a final interest rate hike by the US Federal Reserve (Fed) this year have dropped after US job openings hit their lowest levels since early 2021. This has led to a correction in the US Dollar as traders reduced their bets on further rate hikes.
Here we go again, my friends. It’s time to look critically into the future of what trading opportunities September might have in store for us. As always, it is essential to note that the views expressed here are mine and should not be considered financial advice without proper examination.
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