USD/CHF has been trapped in a range of 0.9850 to 1.0130, trading with higher volatility. USD regained momentum ahead of US GDP report which is expected to reveal contraction in the US economic growth in Q4.
US GDP has grown quite well since January 2016 but failed to sustain momentum it had since the beginning of the upward trend. The GDP expanded to 4.2% in mid-2018 but economic growth saw a rapid downturn just after hitting the peak. Today GDP is expected to slow down a pace of growth to 2.4% from the previous value of 2.6%. If the forecast comes true, this will be bearish for USD.
Switzerland GDP is expected to have risen in January but with more modest growth than expected. After GDP contraction in Q4 2018, positive changes inidicate some hope but do not guarantee sustainable economic growth.
Moreover, today US Unemployment claims report is going to be published. The number of jobless claims is expected to increase marginally to 222k from 221k. FOMC members Clarida and Bowman are going to speak later today. Their speeches are likely to be neutral in contents. Today Andrea Maechler, a member of the Governing Board of the Swiss National Bank, is going to shed light on the key interest rate and monetary policy. The comments are likely to be neutral. So, the speech will hardly create a lot of buzz in the market. USD gains may not be affected for this reason. US GDP report which is due later today is the most important thing to watch for traders. Today's GDP report is the key to market sentiment which will establish trend momentum. Thus, the pair is going to complete the correctional and consolidation phase.
The material has been provided by InstaForex Company - www.instaforex.com
No comments:
Post a Comment