FxWirePro: Daily Commodity Tracker - 21st March, 2022 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
US Jobs Report Preview: June Payroll Growth Seen Slowing as Fed Rate Decision Looms 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Gold Price Today: Bullion Heads for First Weekly Gain as Weak U.S. Jobs Data Eases Rate Hike Fears 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
We expect the Swiss franc to be an outperformer among the group of majors, even if the U.S. Federal Reserve moves with a hike in rates. Swiss franc, thanks to the intervention of the Swiss National Bank (SNB) remains quite attractively valued given the inflated asset prices in the financial markets amid a slowdown in the economy.
We have long been forecasting a weakness in the USD but that hasn’t materialized much so far. The interest rate path that supported the rise of the dollar back in 2014 isn’t that steep anymore, instead, the green buck found support as an alternate safe haven, monetary policies from other central banks and regulatory shortages. However, we expect that will slowly be nearing its end over the course of the year and the next unless Fed radically revives the expectation path. Even if they do, we suspect that it would be supportive of the upside in the franc, given the inflated capital market.
Trade idea:
We call for a sell in the dollar against franc (USD/CHF) at 0.972 and at rallies, targeting 0.9 area with the stop loss around parity.
