USDCHF Targeting A Test of .9300 – Forex Brokers Directory – Forex Brokers

Analysts at Credit Agricole note ‘Heightened concerns over Europe’s energy outlook going into the winter have spurred sustained safe-haven bids into the CHF whose appreciation was temporarily halted by a neutral SNB. Consolidation could still ensue, as Switzerland’s sounder stance makes the CHF a more compelling alternative among European currencies’, while the ‘ The USD has been seen as the key beneficiary of the unfolding global economic slowdown: (1) the US economy is more resilient than its European and Asian counterparts; (2) the Fed has emerged as one of the more hawkish G10 central banks in a boost to the USD’s real rate appeal; while (3) risk-averse investors continue to seek refuge in high-yielding USD cash. We expect the USD to peak only in Q123 as it remains supported by its status as a high-yielding, safe-haven currency. The fact that the USD is overbought and overvalued also means that the pace of any additional gains could slow down in the next 3-6M, however. Further out, depending on the severity of the global downturn, the USD should cede some ground vs other safe havens like the JPY and CHF –under a global ‘hard landing’