With the trade war between the US and China intensifying and the likelihood of an escalation at the end of this month on the rise, how will the US Fed act on interest rates? The US Dollar is expected to remain under pressure and forex traders will take a close look at today’s Import and Export Price Index. Economists predict that price increases as a result of tariffs has largely been absorbed by companies, but will this trend continue? Which impact will initial jobless claims have on price action? Forex trading for beginners can often be overwhelming, but simply follow the PaxForex Daily Fundamental Analysis and allow our expert analysts to guide you to over 500 pips in monthly profits!
Here are the key factors to keep in mind today for US Dollar trades:
- US Import and Export Price Index: The US Import Price Index for May is predicted to decrease by 0.3% monthly and by 1.4% annualized. Forex traders can compare this to the US Import Price Index for April which increased by 0.2% monthly and which decreased by 0.2% annualized. The US Import Price Index excluding Petroleum for May is predicted to decrease by 0.1% monthly. Forex traders can compare this to the US Import Price Index excluding Petroleum for April which decreased by 0.6% monthly. The US Export Price Index for May is predicted to decrease by 0.1% monthly and by 0.5% annualized. Forex traders can compare this to the US Export Price Index for April which increased by 0.2% monthly and by 0.3% annualized.
- US Initial Jobless Claims and Continuing Claims: US Initial Jobless Claims for the week of June 8th are predicted at 215K and US Continuing Claims for the week of June 1st are predicted at 1,680K. Forex traders can compare this to US Initial Jobless Claims for the week of June 1st which were reported at 218K and to US Continuing Claims for the week of May 25th which were reported at 1,682K.
Economists predict that the Swiss PPI for May will continue to show deflationary pressures on an annualized basis. Forex traders will pay close attention to today’s SNB press conference which will follow its latest interest rate announcement. While no change is currently expected, with the Swiss economy anticipated to outperform and the Swiss Franc in rally mode, will the Swiss central bank suggest a change in future monetary policy? How will this impact forex trading strategies exposed to the USDCHF?
Here are the key factors to keep in mind today for Swiss Franc trades:
- Swiss Producer & Import Prices: Swiss Producer & Import Prices for May are predicted to increase by 0.1% monthly and to decrease by 0.7% annualized. Forex traders can compare this to Swiss Producer & Import Prices for April which were reported flat at 0.0% monthly and which decreased by 0.6% annualized.
- Swiss National Bank Sight Deposit Interest Rate: The Swiss National Bank Sight Deposit Interest Rate is predicted at -0.75%. Forex traders can compare this to the previous Swiss National Bank Sight Deposit Interest Rate which was reported at -0.75%. The SNB 3-Month Libor Lower Target Range is predicted at -1.25% and the SNB 3-Month Libor Upper Target Range is predicted at -0.25%. Forex traders can compare this to the previous NB 3-Month Libor Lower Target Range of -1.25% and to the SNB 3-Month Libor Upper Target Range of -0.25%.
Should price action for the USDCHF remain inside the or breakdown below the 0.9935 to 0.9980 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9950
- Take Profit Zone: 0.9715 – 0.9790
- Stop Loss Level: 1.0000
Should price action for the USDCHF breakout above 0.9980 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0015
- Take Profit Zone: 1.0100 – 1.0125
- Stop Loss Level: 0.9980
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