The USD/CHF pair has extended its recovery above 1.0004 in the Tokyo session after a rebound from 0.9980. The asset has picked bids despite a subdued performance by the US dollar index (DXY). The mighty DXY is displaying an intraday inventory adjustment phase, which could deliver an explosion of the volatility contraction in the European session.
The risk-on profile is getting back into the picture as S&P500 futures have extended their gains after recovering their morning losses. Meanwhile, the returns on US government bonds have slipped further as investors’ risk appetite is improving. 10-year US Treasury yields have dropped marginally below 4.21%.
The investing community is shifting its focus toward the US Gross Domestic Product (GDP) data, which is due on Thursday. As per the projections, the US growth rate is seen higher at 2.4% vs. a decline of 0.6% reported earlier. An occurrence of the same could delight the Fed as the labor market is losing its charm and inflationary pressures are not providing solid evidence of a slowdown in the pace of the inflation rate.
As accelerating interest rates have forced institutions to trim their economic projections for the US economy, eventually, fears of recession risk have escalated. US Treasury Chief Janet Yellen cited “Cannot rule out risk” of a recession, reported MSNBC news.
On the Swiss Franc front, investors are awaiting the release of the ZEW Survey-Expectations data. The economy catalyst is seen lower at -43.8 vs. the prior release of -69.2. An improvement in business and employment conditions could support the Swiss franc bulls ahead.
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EUR/USD has gathered bullish momentum during the American trading hours and climbed to its highest level in over a month above 1.0050. The renewed selling pressure surrounding the greenback following the BoC's dovish hike fuels the pair's rally.
GBP/USD has extended its daily rally and advanced beyond 1.1600 on Wednesday amid broad-based dollar weakness, as reflected by a 1% decline in the US Dollar Index. Meanwhile, UK Chancellor Jeremy Hunt said they postponed the budget announcement to November 17.
Gold soared to $1,674.84 its highest in over two weeks. The advance came by the hand of broad dollar’s weakness, as market participants started getting rid of the safe-haven currency amid speculation the Fed will slow the pace of quantitative tightening.
Cardano price is in a delicate place after its volatile move over the last 24 hours. Investors need to be cautious of entering the market late and getting trapped. A better plan would be to wait for ADA to pull back to critical levels.
Meta Platforms lost 4% afterhours on Tuesday following Alphabet's largescale earnings miss. The owner of Facebook, Instagram and Whatsapp sank to $132 after the search giant missed Wall Street consensus marks.
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