USDCHF Technical Analysis – The CHF surges on risk-off flows ...Middle East

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USDCHF Technical Analysis – The CHF surges on risk-off flows
Fundamental OverviewThe weak US NFP report last Friday triggered risk-off flows. Things got dire on Monday as the Japanese Nikkei dropped 12% overnight and we saw a general selloff in global stock markets. At one point, the markets saw the Fed cutting rates by 136 bps by year-end and some chances of an emergency rate cut. Although the volatility calmed down a bit and markets recovered the Monday’s losses, the expectations haven’t changed much as the market is still pricing a higher probability for a 50 bps cut by the Fed in September and a total of 103 bps by year-end. The CHF gained against the USD both because of the aggressive rate cuts pricing for the Fed and the risk-off flows. USDCHF T

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