• USD/CHF remains stuck around 0.9350 as the US Treasury yields rebound sharply.
  • The DXY is aiming at 100.00 on raising bets on an aggressive interest rate hike.
  • Russia ceases to be a member of the UN Human Rights Council.

The USD/CHF pair is oscillating in a narrow range of 0.9318-0.9348 since Thursday as the Federal Reserve (Fed) policymakers have started dictating a reversion to neutral rates from the ultra-loose stances on the monetary policy.

After commenting on the extent of an interest rate hike by the Fed in coming monetary policies, Fed’s Monetary Policy Committee (MPC) members have shifted to advocating a move back to the neutral policy. The ultra-loose monetary policy and helicopter money to spurt the growth rate after the Covid-19 pandemic has done its job now and it would be better to resort to a situation of normal rates and a self-dependent economy. Atlanta Fed President Raphael Bostic on Thursday cited that it is fully appropriate that the Fed move policy closer to a neutral position, it should do so in a cautious way, reported Reuters.

On the Russia-Ukraine front, Russia ceases to be a member of the United Nations (UN) Human Rights Council as the members have voted against the Kremlin after its war crimes in Bucha, Ukraine. Also, US lawmakers have voted to ban oil, gas, and coal imports from Moscow. Adding to that, the former has also decided to strip its tag of ‘most Favored nations’ trade status, which will result in higher tariffs for Moscow.

Meanwhile, the US dollar index is aiming to tap the magical figure of 100.00 on expectations of higher US Consumer Price Index (CPI) numbers next week. The 10-year US Treasury yields have reclaimed a three-year high at 2.66% as rate hike fears renew.

This article was originally published by Fxstreet.com.Read the original article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here