USDCHF Technical Analysis – The USD weakens on higher chances of a 50 bps cut ...Middle East

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USDCHF Technical Analysis – The USD weakens on higher chances of a 50 bps cut
Fundamental OverviewLate Thursday, around 1:00 PM ET, WSJ’s Timiraos published an article which seemed suggesting that a 50 bps cut was still being discussed. The market responded by raising 50 bps cut probabilities to around 40% from 13% before the news. Nick Timiraos is considered a Fed “insider”, so the market is attentive to all of his pieces concerning potential Fed decisions. The probability for the Fed to cut by 50 bps at the upcoming meeting stand now around 60% with a total of 118 bps of easing by year-end. These repricing weakened the US Dollar across the board as Treasury yields fell further. Once we are done with the Fed decision, the focus will switch back to the economic data.

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