- Following the Swiss CPI report, the USD/CHF remains above the 0.9200 level.
- The Swiss Consumer Price Index (CPI) for September was 1.7% YoY vs. 1.6% before, which was lower than predicted.
- In September, the manufacturing sector in the United States continued to shrink.
- Market participants will be focused on the August US JOLTS Job Openings, which are coming on Tuesday.
USDCHF: Resuming Its Rally After a Correction
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Try our Analysis Service with a 14-day Trial for $9.99!#USDCHF #Forex #Rally ##Elliottwave pic.twitter.com/gyNXr0d5yX— Elliottwave Forecast (@ElliottForecast) October 3, 2023
During the early European session on Tuesday, the USD/CHF pair gains traction above 0.9200. The pair’s rise is aided by stronger US statistics and weaker-than-expected Swiss inflation figures.
The latest data from the Swiss Federal Statistical Office revealed on Tuesday that the country’s Consumer Price Index (CPI) for September came in at 1.7% YoY, down from 1.6% the previous month and below the 1.8% expected. On a monthly basis, inflation declined to 0.1%% from 0.2% the previous month, falling short of the market consensus of 0%. As a result of the negative data, the Swiss Franc (CHF) loses ground against the US Dollar.
Forex Today: US Dollar holds at multi-month highs ahead of mid-tier data – by @eren_fxstreethttps://t.co/sj16aw28cC
#Majors #Currencies #Macroeconomics #Commodities
— FXStreet News (@FXStreetNews) October 3, 2023
In terms of the US dollar, business conditions in the US manufacturing sector continued to deteriorate in September. The US ISM Manufacturing PMI was 49.0 in September, up from 47.6 the previous month and above the market consensus of 47.7. In addition, the Prices Paid Index fell from 48.4 to 43.8. The Employment Index increased from 48.4 to 51.2 points. Finally, the New Orders Index climbed from 46.8 to 49.2 points.
Loretta Mester, President of the Federal Reserve Bank of Cleveland, remarked earlier on Tuesday that the Fed will most certainly need to raise interest rates again this year, and that the Fed’s monetary policy course will be determined by how the economy performs. Furthermore, Fed Governor Michelle Bowman remarked on Monday that it is likely that the policy rate will need to be raised further and maintained at restrictive levels for an extended length of time. However, the higher-for-longer rate narrative in the United States strengthens the Greenback and acts as a tailwind for the USD/CHF pair.
FED'S MESTER SAYS ONE MORE U.S. RATE HIKE MAY BE NEEDED (Reuters)
Federal Reserve Bank of Cleveland President Loretta Mester said Monday that the U.S. central bank most likely isn’t done raising interest rates amid ongoing inflation pressures. pic.twitter.com/8PNEjYpBef
— FXHedge (@Fxhedgers) October 3, 2023
Loretta Mester, President of the Federal Reserve Bank of Cleveland, remarked earlier on Tuesday that the Fed will most certainly need to raise interest rates again this year, and that the Fed’s monetary policy course will be determined by how the economy performs.
Global stocks and sovereign bonds fell after hawkish signals from the Federal Reserve increased speculation that the central bank will continue to raise interest rates to combat inflation. Hong Kong shares led the decline in Asia, with the Hang Seng Index falling by up to 3.4%. pic.twitter.com/E8r6IaWj6M
— International Finance Asia (IFA) (@IFA_Securities) October 3, 2023
Furthermore, Fed Governor Michelle Bowman remarked on Monday that it is likely that the policy rate will need to be raised further and maintained at restrictive levels for an extended length of time. However, the higher-for-longer rate narrative in the United States strengthens the Greenback and acts as a tailwind for the USD/CHF pair.