Swiss Franc Climbs In Cautious Trade
August 27 2024 - 8:46AM
RTTF2
The Swiss franc was higher against its major counterparts in the
New York session on Tuesday, as caution prevailed ahead of earnings
results from Nvidia and U.S. personal consumption expenditure data
due on Friday.
Investors await the release of fiscal second quarter results
from AI darling Nvidia after the close of trading on Wednesday for
more insights into whether the AI trade remains in play.
Friday's PCE inflation data could reinforce expectations that
long-awaited rate cuts are coming soon.
The Fed's favorite measure of underlying inflation is seen
rising 0.2 percent in July for a second month, pulling the
three-month annualized rate of so-called core inflation down to 2.1
percent.
While the data is not likely to affect optimism the Fed will
lower rates next month, it could impact expectations for how
quickly the central bank cuts rates.
The franc advanced to a 7-1/2-month high of 0.8421 against the
greenback and near a 3-week high of 0.9407 against the euro, from
its early lows of 0.8484 and 0.9474, respectively. The currency is
seen finding resistance around 0.83 against the greenback and 0.93
against the euro.
The franc touched 1.1148 against the pound and 171.32 against
the yen, setting 4-day highs. The currency is likely to locate
resistance around 1.10 against the pound and 174.5 against the
yen.
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