- USD / CHF remains directionless below 0.9100 on Thursday.
- The US dollar index remains calm around 93.00 after Wednesday’s drop.
- A look at US GDP data and the speech by FOMC President Jerome Powell.
USD / CHF hit a session high of 0.9099 at the start of the European session, but quickly erased its gains. As of this writing, the pair was virtually unchanged on a daily basis at 0.9083.
All eyes on Powell, US data
Trade action will likely remain volatile until key macroeconomic data released by the United States and FOMC Chairman Jerome Powell at the Jackson Hole Symposium.
The U.S. Bureau of Economic Analysis will release its second estimate of second-quarter GDP and the U.S. Department of Labor will release its weekly data on initial jobless claims for the week ending August 22.
Watching Powell’s speech, analysts at JP Morgan said they expected to see the introduction of medium inflation targeting. Analysts further noted that the USD could come under further selling pressure if Powell actually sets the stage for a rollout of this framework at the September meeting. Currently, the US Dollar Index (DXY) is up 0.14% on a daily basis to 93.01.
Even if the DXY turns south as a result of this event, losses in USD / CHF could remain limited as a possible positive change in market sentiment could weigh on the CHF as well.