Forex Signals Brief June 23: BOE and CHF Raise Rates, CHF and GBP Fall
Yesterday the Bank of England raised rates by 50 BPS while the SNB hiked 25 bps, but the GBP and the CHF ended up lower
Yesterday’s Market Wrap
Yesterday marked the second day of testimony by Federal Reserve (Fed) Chairman Jerome Powell at the US Congress, which began in the evening. His comments and remarks by other FED members were more hawkish than on Wednesday, which leny a slight bid to the USD.
Although, central banks garnered most of the attention, with the Bank of England (BOE) taking a somewhat unexpected decision to raise the bank rate by 50 basis points, setting it at 5.00%. This move by the BOE was considered more hawkish, signaling a stricter approach to combating inflation. The decision followed the release of the UK inflation report, which unveiled inflation figures higher than anticipated with the CPI at 8.7% YoY. The Swiss National bank also delivered a rate hike, worth 25 basis points, although both the GBP and the CHF ended up lower against the USD.
Today’s Market Expectations
Today is a services and manufacturing day. Earlier this morning we had the services and manufacturing numbers from the Eurozone and the UK, while later the US reports will be released. Although they’re not changing much, with manufacturing activity remains in contraction while services continue to expand. Besides that, UK retail sales turned negative in May, as today’s report showed.
Forex Signals Update
Yesterday the volatility was satisfying, not too high, but enough for us to pull many trades. The USD started to find some bids, so we remained long on the Buck mostly, particularly against Gold, which proved to be quite profitable as safe havens slipped lower.
Remaining Short on GOLD
Gold has been going through a bearish phase recently, and this downward trend appears to be continuing, despite a break of the 100-day Simple Moving Average (SMA) on Wednesday. Yesterday the price continued to slip lower and we opened three sell Gold signals, all of which closed in profit.
XAU/USD – Daily chart
Selling USD/CHF at the 50 SMA
Earlier this month, USD/CHF shifted to a bearish stance following a period of buyer dominance, as the USD started to weaken. The 50-day Simple Moving Average (SMA) (represented by the yellow line) had been serving as support, maintaining the bullish trend. However, the price experienced a decline below this moving average, prompting the decision to initiate a sell signal for USD/CHF yesterday. The information provided suggests that the overall sentiment for USD/CHF has shifted to a bearish outlook, with sellers gaining control over the market. It is important to consider the latest market developments and analysis to stay updated on the current situation, as market dynamics can change rapidly.
USD/CHF – 240-minute chart
Cryptocurrency Update
BITCOIN Moved Above $30,000 Again
Bitcoin experienced a brief drop below $25,000 recently. However, this week, we witnessed a bullish reversal as Bitcoin started moving towards the 50-day Simple Moving Average (yellow) on the chart. Yesterday, buyers successfully pushed the price above the major level of $30,000, so buyers are back in control. 
BTC/USD – Daily chart
ETHEREUM Missing Our TP Target
Ethereum experienced a decline below the $1,630s level, but the presence of the 200-day Simple Moving Average (SMA) (represented by the purple line) provided support and halted the downward movement. This moving average acted as a support level on the daily chart, and the price formation above it resulted in a doji candlestick pattern, which is considered a bullish reversal signal. Subsequently, last week we saw abune off that moving average and ETH/USD moved above $1,900 but missed our TP target.
ETH/USD – Daily chart
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