Fundamental analysis of USD/CHF for December 8, 2017

USD/CHF has been impulsively bullish after breaking above 0.9850 price area recently. USD is a dominant currency in the pair ahead of the today’s high impact economic events. Today US Average Hourly Earnings report is going to be published which is expected to increase to 0.3% from the previous value of 0.0%. The Non-Farm Employment Change is expected to decrease to 198k from the previous figure of 261k and the unemployment rate is expected to be unchanged at 4.1%. Along with these high impact economic reports, USD Prelim UoM Consumer Sentiment report is going to be published which is expected to have a slight increase to 99.0 from the previous figure of 98.5. Besides, the Final Wholesale Inventories report is expected to be unchanged at -0.4% and the Prelim UoM Inflation Expectations is expected to have better result over the previous value of 2.5%. On the CHF side, this week CPI report was published with a worse value of -0.1% decreasing from the previous value of 0.1% which was expected to be at 0.0%. The Unemployment Rate was published with decrease to 3.0% from the previous level of 3.1% which was expected to be unchanged. Furthermore, the foreign currency reserves has decreased to 738B from the previous figure of 742B. As of the current scenario, Switzerland has been quite mixed with the economic reports and the United States was quite the same. However, the market sentiment favors USD because of the upcoming rate hike probability this month which might drive the market higher in the coming days. If the high impact economic reports come with mixed results, we may observe some stronger counter move taking the price lower.

Now let us look at the technical view. The price is currently residing in the area of 0.9950 where a Bearish Continuing Divergence along with Stochastic and RSI are showing overbought situation. The price is expected to show some retracement towards 0.9850-60 area before it heads up higher in the coming days. As the price remains above 0.9850-60 area, the bullish bias is expected to continue further.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Fundamental analysis of USD/CHF for December 8, 2017