US Currency Continues to Grow Ahead of GDP Data Release

Good data on core durable goods orders in the US for August and a general decrease in risk appetite in the market are helping to strengthen the US dollar. The American currency set new highs in such pairs as EUR/USD, GBP/USD, and USD/CHF. Commodity currencies, along with precious metals, continue to decline.


The latest meeting of the Swiss National Bank (SNB) disappointed buyers of the Swiss franc. Contrary to analysts' forecasts, officials refused to raise the rate by 0.25%. The change in the vector of the SNB monetary policy contributed to a sharp strengthening of USD/CHF. In just a few days, the price rose by 300 points and strengthened above the alligator lines on the weekly timeframe. If the current situation does not change and the US dollar continues to strengthen, the pair may continue to rise towards the nearest important resistance range of 0.9400-0.9450. We can consider a cancellation of the upward scenario only after the pair moves below the psychological level of 0.9000.

Today's news on US GDP for the Q2 will be important for the pair's pricing. The publication of the indicator is scheduled for 15:30 GMT+3. Also, at the same time, weekly data on the number of applications for unemployment benefits in the United States will be released.


Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.