USD/CHF: SECO shares Swiss GDP forecasts
The Swiss currency keeps trying to catch the initiative in the USD/CHF pair, being at 0.8970, but the upward dynamic is limited by the macroeconomic statistics.
Thus, the Swiss State Secretariat of Economic Affairs published an article on the national economic growth outlook, which said that if the current rate continued, gross domestic product could grow by 1.1% in 2023 and by 1.5% in 2024. The faster pace is constrained by high commodity prices in international trade, creating risks for the coming quarters. Experts report that consumer inflation will fall to 2.3% by the end of this year, which is outside the 1.5-2.0% range set by the Swiss National Bank, preventing the franc from becoming the dominant currency against the U.S. dollar at the end of the year.
- Support levels: 0.8920 and 0.8820.
- Resistance levels: 0.9020 and 0.9150.
The price of the precious metal is influenced by mixed market sentiment, and is now holding in the area of 1950.00. The asset showed a moderate decline the day before, but continues to develop a sideways trend in the short term.
Gold is experiencing negative factors amid a weak U.S. dollar, which is trying to regain ground on forecasts of a renewed upward correction of the key indicator from the Fed in the foreseeable future. At the end of the June meeting, the financial authorities decided to leave the value at the previous 5.25%, but giving a signal to the markets that the adjustment remains quite possible already at the July similar event. In their turn, economists note that the cost of borrowing is approaching its theoretical upper limit of 5.50-5.75%, which makes it impossible for the "American" to hope for further strengthening in the future.
- Resistance levels: 1952.53, 1960.00, 1972.85, 1985.11.
- Support levels: 1940.00, 1930.00, 1915.00, 1900.00.
Oil market review
During the APAC trading session, Brent crude oil quotations moved in mixed dynamics, holding positions at 75.85. "Black gold" found itself under pressure since Monday, moving away from the local maximum of June 8 due to the U.S. dollar correction, which got support from the prospects of another strengthening of the borrowing costs from the Fed next month, before the agency announced a break in the adjustment of monetary parameters in order to evaluate the effectiveness of the announced stimulus the day before.
The negative dynamics is intensified due to the news background from China, where the authorities recorded a decrease in the dynamics of economic indicators recovery. China leads in imports of energy commodity group and is able to influence the balance between supply and demand on the trading floors. Today, on June 20, the board of the People's Bank of China issued a statement to reduce the interest rate by 1.00% to the target of 3.55%, which has not happened since August of the previous year. The current inflation rate gives room for maneuver for the authority to make such moves, but market participants indicated that the news was not positive.
- Resistance levels: 77.00, 78.78, 80.00, 81.00.
- Support levels: 75.63, 74.00, 73.00, 72.00.
Cryptocurrency market overview
ETH quotes show a decline against the U.S. dollar, trading at 1727.00.
The U.S. Securities and Exchange Commission (SEC) maintains a heightened interest in the compliance of cryptocurrency companies, which keeps pressure on the position of the electronic asset. Recall, the day before the regulator filed a complaint in the courts against major exchanges Coinbase and Binance, pointing to the platforms' ability to trade banned tokens such as Solana, Cardano and Polygon to securities. JPMorgan Chase & Co. later reported that ETH was also included in the initial version of the list, increasing tensions between investors, but in time followed a statement from the US Congress that, wishing to protect market participants, lawmakers could designate ETH a "special category" of cryptoassets and not equate the instrument with securities.
- Resistance levels: 1790.00, 1912.00.
- Support levels: 1650.00, 1480.00.