Swiss Franc Climbs On Recession Concerns
24 June 2022 - 4:13PM
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The Swiss franc advanced against its major rivals in the
European session on Friday, on growing concerns about a recession
fuelled by aggressive rate hikes from the Federal Reserve to tame
inflation.
Powell said that the Fed's commitment to curbing inflation was
"unconditional," intensifying worries about the possibility of a
recession.
Commodity prices dropped on growing concerns over a global
economic downturn.
In his Congressional testimony on Thursday, Powell acknowledged
that the Fed's monetary policy tightening may push up
unemployment.
There are no precision tools and the possibility of unemployment
moving up has risen, Powell added.
The franc rebounded to 140.96 against the yen, from a low of
139.87 seen at 4 am ET. On the upside, 141.00 is possibly seen as
its next resistance level.
The franc edged up to 0.9578 against the dollar and 1.1757
against the pound, from its early lows of 0.9632 and 1.1805,
respectively. The currency is likely to locate resistance around
0.92 against the dollar and 1.16 against the pound.
The franc recovered slightly to 1.0100 against the euro, after
falling to 1.0139 at 4:20 am ET. If the franc rises further, 0.99
is possibly seen as its next resistance level.
Looking ahead, U.S. new home sales for May and University of
Michigan's final consumer sentiment index for June are due in the
New York session.
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