FX Empire Editorial Board
Add to Bookmarks

The USD/CHF moved to the upside with the start of the week as the dollar gained grounds on the risk off sentiment in the market that powered the pair to the upside ahead of the rate decisions from both the Feds and the SNB.

The volatility remains high for the franc with investors avoiding any risky positions ahead of the SNB decision on fear of a drastic new move to weaken the franc. The currency also remained weak with the risk aversion supporting the dollar as investors saw the EU summit did nothing to end the crisis and Moody’s warning for downgrades intensified the jitters.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Tuesday will be more volatile for the pair and trading is likely to remain biased to the upside ahead of the FOMC decision where the feds are likely to keep their policy unchanged and with the rates to be held at the record low range near zero. Nevertheless, any signal from the Feds that they are ready to take new decisions to support the economy or even QE that might support the sentiment and accordingly weaken the dollar accordingly yet overall the bias for the pair remains to the upside.

The United States will join the session at 13:30 GMT with the retail sales index for November, where the advance retail sales index could have expanded by 0.6% from 0.5%, while the retail sales less Autos index could have advanced by 0.5% from 0.6%.

At 15:00 GMT the United States will provide the business inventories index for October, which could have improved 0.4% from the previous steady reading.

At 19:15 GMT the Federal Open Market Committee (FOMC) will announce the rate decision (DEC 13), with expectations the Federal Bank could have left rates unchanged at 0.25%.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker