U.S. Debt Markets See Action: USD/CHF In Focus - Forex News by FX Leaders

U.S. Debt Markets See Action: USD/CHF In Focus

Posted Monday, March 12, 2018 by
Shain Vernier • 1 min read

Today’s U.S. Treasuries auction has brought a few surprises. Investors have taken notice of the debt market, with growing yields in the 6-month bill and 3-year note auctions. With the 10-year note auction coming up at 1:00 PM EST, it appears as if the markets are pricing a March 21 FED rate hike into valuations.

The CME FedWatch index is assigning an 86% chance of rates going up next Wednesday. This is the popular sentiment and current consensus opinion.

USD/CHF Technicals

After a great open to 2018 for safe-haven currencies, the USD is posting a comeback. The USD/CHF has rallied off of yearly lows over the past several weeks, to trade at the .9500 handle.

USD/CHF
USD/CHF, Daily Chart

Sometimes technical analysis can be incredibly simple. When looking at the USD/CHF daily chart, .9500 is the key number driving participation.

Here are the levels to watch for the USD/CHF as we kick off the forex week:

  • Resistance(1): Psyche Level, .9500
  • Support(1): Bollinger MP, .9417

Overview: As I mentioned in an earlier update, patience is a virtue. Ranges across the forex are tight — it may take some time for these markets to open up.

For now, I expect the Swissie to remain in a consolidation phase between the .9400 and .9500 handles. Thursday will be a big day for the USD/CHF, as the Swiss National Bank (SNB) is to announce their interest rate decision. Rates are expected to be held at -0.75%. In the event that there is a surprise, the likelihood of a directional move will be heightened.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments