FxPro Financial Services Ltd | Dec 17, 2020 06:17AM ET
The weakening of the dollar is gaining momentum, pushing investors to other assets. There is a rush of demand in many markets, from the euro and gold to equities and cryptocurrency markets.
In the final meeting of 2020, the FOMC promised to continue asset purchases on the balance sheet by 120B monthly, until inflation confidently recovers to 2%. These comments allowed the markets to maintain their rising trend as the dollar continues to decline.
This unhonorable title triggered an impulsive rise in USD/CHF. However, the general trend quickly took the pair back to 0.8830, an area of almost six-year lows. Since the beginning of the year, USD/CHF has lost 10%. Certainly, without massive franc sales, this move could have been much stronger, so it is unlikely that the NBS will reverse its rhetoric today after its quarterly monetary policy meeting.
The FxPro Analyst Team
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