The USD/CHF currency pair has seen a significant decline since May, but recent price movements suggest that it may be stabilizing. After consolidating in late August, the pair has broken out upwards, indicating a potential reversal in momentum. Positive economic surprises from the United States could further support this trend.
Key economic indicators, such as non-farm payrolls and inflation data, will be important in shaping market expectations regarding Federal Reserve rate cuts. The US economic surprise index returning to positive territory for the first time since April has led to speculation about a rate hold, which could benefit the USD/CHF pair. From a technical standpoint, the 0.8730 level could be a potential price target, while the previous upper consolidation range at 0.8546 is expected to act as a support level.
Spot silver has struggled to surpass its year-to-date high of US$32.45 due to the strength of the US dollar and rising Treasury yields. However, silver prices are currently supported by a trendline, and there is potential for bullish momentum. Factors such as safe-haven buying driven by geopolitical risks and increased industrial demand, particularly in China, could contribute to a price increase.
If silver manages to retest the US$32.45 level, the chances of breaking through to a new year-to-date high could significantly increase. On the downside, the trendline support at US$29.95 is a critical level to watch, as a breach below this point could indicate further weakness in silver prices. Geopolitical developments and economic indicators will play a crucial role in determining the future trajectory of silver.
The China A50 index has paused its sell-off, but uncertainty remains due to a lack of specific details regarding fiscal stimulus from Chinese authorities. The upcoming US elections will also impact trade relations and economic focus, adding to the cautious sentiment among investors.
From a technical perspective, the China A50 is currently in a consolidation phase. A breakout above the 14,000 level would provide more confidence for buyers, while a decline below the 13,600 level could indicate continued weakness in the index. The interplay of domestic economic policies and international relations will be key factors influencing the index's performance in the coming weeks.