- The US dollar rallied a bit during the trading session on Thursday as we continue to see a lot of consolidation against the Swiss franc.
- With this being the case, the market is also trying to find out whether or not it can find a floor, and if it can, then it will more likely than not start to see more money flow toward America.
This does make a little bit of sense, considering that the market is way ahead of itself when it comes to the idea of the Federal Reserve cutting rates. After all, we have been watching this play out for what seemed like a lifetime now, as traders keep hoping that the Federal Reserve will cut rates, yet the Federal Reserve will find reasons not to. Ultimately, this is a market that continues to be very noisy but have to keep in mind that the economic numbers are starting to soften a bit for the United States, but at the same time, they are not bad enough to get the Federal Reserve to be concerned.
Interest Rate Differential
Top Regulated Brokers
The interest rate differential between the United States and Switzerland continues to be very large, furthermore, the United States has just levied a massive amount of tariffs against the Swiss, so this could be reflecting a little bit of punishment for the Swiss economy as well. The 50 Day EMA sits just above, and a lot of people will be watching that closely. Ultimately, this market is in the process of trying to bottom, and I am also watching the crucial 0.81 level, which of course is a large, round, psychologically significant figure that a lot of people will be watching as well. That’s an area that previously had been support, so if we were to break above there, then one would have to assume that there is a certain amount of short covering just waiting to happen.
Ready to trade our daily forex forecast? Here are the best online trading platforms in Switzerland to choose from.