- Summary:
- US GDP data comes in as expected leading to little change in prices of USD pairs. USDCHF is now testing key resistance in the absence of market-moving data.
The US GDP data (quarterly) came in at 2.0%, matching market expectations as well as the previous figure of 2.0%. Other US data released at the same time did not show any remarkable deviations from the consensus numbers. As such, the USDCHF and other US pairs in the forex market have not made any remarkable price changes. Gold price is also largely unchanged.
As the trading day grinds on, most of the action will be seen on the USD pairings with the Euro and British Pound, as the central bank chiefs in Europe and England will soon be on the newswires at different speaking events.
However, the USDCHF deserves mention because it has ticked up quite a bt this week as a result of renewed optimism in the US getting trade deals with China and Japan sorted out soon. This has dampened risk-off sentiment, causing the CHF to sell off.
USDCHF Near-term Outlook
A nice move to the upside has followed last week’s dovish action by the SNB as well as positive comments on trade between the US and China/Japan by US President Trump.
However, it is now challenging the R1 pivot at 0.9942. This is also the site of previous highs posted on September 11, 12 and 19.
A break above this level will open the door for USDCHF to target the Sept 17 high of 0.99707. Failure to break this level could present an opportunity for a retest of last week’s lows a 0.98957 (intraday central pivot).
More price volatility is expected when the US Core Durable Goods orders is released tomorrow.