USD/CHF drops below 0.9850 on Fed's Bullard's comments
- Fed's Bullard adopts a dovish tone in his remarks.
- Chairman Powell's speech is in the crosshairs.
- US Dollar Index drops below 95.50.
The greenback came under a modest selling pressure in the last hour and the USD/CHF pair fell to a fresh session low at 0.9832. As of writing, the pair was trading at 0.9835, losing 0.15% on the day.
Ahead of the Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium, St. Louis Fed President James Bullard spoke to news outlets on the sidelines. Regarding the economic performance of the U.S., Bullard argued that the growth could lose momentum in 2019 and 2020 and added that he didn't see much inflation pressure. Bullard further added that Chair Powell will be very careful in his remarks later today and markets were "putting very high odds of September rate hike."
The US Dollar Index, which staged a decisive recovery on Thursday, lost its traction and eased below the 95.50 mark. At the moment, the index is down 0.28% on the day at 95.40. Also in the session, the U.S. Census Bureau is going to release durable goods orders, which is expected to decline by 0.5% in July following June's 0.8% contraction.
Technical levels to consider
On the downside, supports are located at 0.9800 (psychological level), 0.9745 (Apr. 23 low) and 0.9670 (Apr. 19 low). Resistances could be seen at 0.9865 (daily high/Aug. 23 low), 0.9935 (50-DMA) and 1.0000 (psychological level).