JP Morgan remain dollar bears and look to sell rallies on USD/CHF
- USDCHF has refused to break below ... 0.9050, keeping us in the middle of recent ranges.
- will look to sell into USDCHF rallies back towards 0.92
- ultimately looking for a break of 0.9000
JPM add on the FOMC meeting today (& where for the euro):
- market was looking for clarification on AIT together with forward guidance, recent Fed speak has suggested that this will now be unlikely
- Powell will likely face numerous questions regarding Jackson Hole
- the SEP will be closely watched for clues, where the forecast horizon rolls to 2023 and will likely show rates on hold through this period
- While the committee will recognise the improvement in domestic data (especially unemployment), Powell will still paint a dovish, uncertain outcome.
- Overall, the meeting should be a fairly uneventful one and we remain long euro.