USD/CHF slides below 0.8600 amid weakness in the US Dollar.
Investors want to know how much the Fed will reduce interest rates in September.
Market participants should brace for high volatility amid an eventful US week.
The USD/CHF pair faces an intense sell-off and slides below the round-level support of 0.8600 in Tuesday’s North American session. The Swiss Franc asset plummets as the US Dollar (USD) has declined to a multi-month low as investors seemed to be strongly confident that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.
Market sentiment is favorable for risky assets on Fed potential rate cuts in September. The S&P 500 has opened on a positive note, exhibiting further improvement in investors’ risk appetite. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slumps to near 101.65, the lowest level seen in more than seven months.
This week, investors should brace for more volatility as the Federal Open Market Committee (FOMC) minutes and the preliminary United States (US) S&P Global PMI for August are lined up for release. However, investors will majorly focus on Fed Chair Jerome Powell’s speech at the Jackson Hole (JH) Symposium on August 22-24.
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