USD/CHF: strong positive momentum
Last Friday ended a very volatile week. This week will not be full of economic events, unlike the past. Today also the publication of important economic data is not expected.
However, market participants will pay attention to the speeches of a number of key figures of the US government and the Fed.
Treasury Secretary Janet Yellen is scheduled to speak at 14:00 (GMT), US President Joe Biden - at 15:30, and Fed officials Williams, Waller, Meister will speak at 11:40, 17:00, 19:00.
As a result of the Fed meeting, which ended last Wednesday, its leaders decided to raise interest rates by 0.50% and announced the beginning of the reduction of the Fed's balance of assets in the amount of $9 trillion next month. "Inflation is too high, and we understand the difficulties it causes. We are taking swift action to bring it down," Fed Chairman Jerome Powell said at a press conference following the meeting, adding that "the Open Market Committee generally leans towards considering further interest rate hikes of 50 basis points over the next few meetings.”
Thus, the dollar has every chance to accelerate its growth, primarily due to the toughest policy of the Fed among all the world's largest central banks.
And today, the above members of the Fed leadership can "bring fresh colors" to the overall picture of the growing dollar.
As of this writing, DXY dollar index futures are traded near 103.74, with room for further gains after the DXY hit a new 26-month high of 104.20 yesterday.
However, if Fed officials today favor a more reserved stance on the central bank's monetary policy outlook, the dollar could decline. However, as we assume, - only within the framework of a short-term correction. The potential for its further growth remains, especially since investors also prefer the dollar to other traditional defensive assets such as gold, yen, franc.
Thus, the main tone in the dynamics of USD / CHF, which at the time of publication of this article is traded near the mark of 0.9940, 25 points below yesterday's and 29-month high of 0.9965, so far sets the dollar.