USD/CHF: The American currency is strengthening its position
During the APAC trading session, the USD/CHF instrument shows moderate growth, testing 0.9635.
The Swiss government is giving credit support of 4.0 billion francs to Axpo Holding AG, a leading energy sector company, to minimize losses as the energy crisis continues to develop in the Eurozone. According to the Minister of Energy, Transport, Communications and the Environment, the decision is of a preventive nature in order to accelerate the filling of the reserve, as well as to ensure that the scenario of short-term fuel shortages due to the geopolitical situation and reduced imports of natural gas from Russia to the EU market is excluded. Moreover, the national parliament will be considering a number of measures to support three of the country's leading energy companies, namely Alpiq, BKW Energie AG and Axpo Holding AG, with up to 10.0 billion francs in the fall.
- Resistance levels: 0.9650, 0.9700, 0.9762, 0.9807.
- Support levels: 0.9600, 0.9550, 0.9520 and 0.9478.
GBP/USD: pound is hitting the 1.1500 level
The British currency shows mixed dynamics, hovering around the level of 1.1500. Earlier GBP/USD was going to develop a corrective growth, but the initiative of the "bulls" was limited, because of the growing demand for "safe-haven" dollar and the release of consumer price index data for August.
Thus, the annual inflation rate for August showed a retreat from the record high of 9.9% against the previous 10.1%, contrary to economists' expectations of a further strengthening to 10.2%, the monthly rate also slowed to 0.5% from 0.6%. Non-seasonally adjusted producer prices on an annualized basis declined to 13.7% from 14.4% over the same period, with a preliminary forecast of a decline to 13.9%, the monthly figure showed a correction to 0.3% from 0.8%.
- Resistance levels: 1.1531, 1.1600, 1.1647, 1.1700.
- Support levels: 1.1442, 1.1404, 1.1350.
USD/JPY: The yen is getting support from a possible intervention by the BoJ
The American currency traded up modestly, going back to 143.50 and further strengthening. Earlier USD/JPY showed negative movement of quotations losing an opportunity to approach the psychological threshold of 145.00.
The financial government of Japan is worried about the pace of the yen decline, which updated last week to the minimum mark from 1998. Thus, the head of the Central Bank of Japan Haruhiko Kuroda stated that the current volatility level leads to destabilization of business activity and undermines market stability. As an option, the strengthening of the Japanese yen can be promoted by the currency intervention, as it was stated earlier by the Ministry of Finance, which noted the positive sides of the long-term downward dynamics of quotations. Moreover, foreign citizens staying in the country would be allowed to increase monetary expenditures because currency fluctuations have a favorable effect on price correction. Reminder: the Japanese regulator keeps a negative interest rate, because the rate of consumer price strengthening is still below the target level of 2.0%.
- Resistance levels are 144.00, 145.00, 146.00 and 147.00.
- Support levels: 142.54, 141.50, 140.78, 139.67.
Cryptocurrency market overview
ADA cryptocurrency opened the trading session of the week with negative dynamics, losing momentum at the strong resistance of 0.5200, but at the time of writing has recovered some losses and is testing the 0.4675 level.
As part of the current week, the IOG (Input Output Global) developers responsible for the Cardano update have confirmed their intention to release an updated package for Vasil on September 22, in the meantime the final phase of key component testing is actively underway. The core network will be able to use the update a few days after the fork, which will ultimately improve network performance through the launch of pipeline processing functionality, increased smart contracting tools and task optimization for the needs of growing DeFi market application volumes. Non-exchangeable e-currency trading platform Artano released a document a week earlier that, among other things, notes a key finding about its development processes - according to the final results of Vasil tests, costs have dropped to 76% and transactions have decreased to 92%. Cardano founder Charles Hoskinson notes that the next fork will have a positive impact on the development of decentralized applications.
- Resistance levels: 0.5215, 0.6420.
- Support levels: 0.4230, 0.3400.