US Inflation week

Alright, so USD/CHF indeed went up to 1.2440 on Friday, just like I have predicted. What now? Friday’s strong US retail sales jumped up to 1.4%, the fastest increase in six months. This has undoubtedly led to market talk that maybe the Fed may resume its tightening next month. This week we shall be seeing inflation numbers - with PPI out tomorrow and CPI on Wednesday.

On the charts, I see a bit more room for USD/CHF to continue its move upward. Next level to look out for is the formidable 1.2500 level. I don’t really expect USD/CHF to shoot past that without much profit-taking and selling pressure, especially since we are all waiting for inflation data. Look for shorting opportunities in intraday.

Looking at global interest rates, while the Fed skips raising rates this month, there have been 7 individual central banks rate hikes around the globe just in August alone. I think the Fed still has 1 or 2 more rate hikes to go till the end of the year, so the rollercoaster ride shall continue.

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