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The USDCHF pair remains very vulnerable to news regarding the conflict between the Middle East – the US versus Iran and Iraq. However, with the US President Donald Trump recently backing up and calling for renewed diplomacy, the odds are turning against the Swiss franc and is draining its safe-haven luster in sessions. The pair is expected to climb to its resistance in the coming sessions as the Swiss franc is projected to weaken thanks to the improvement in the US-Iran conflict and the signing of the first phase of the US-China trade agreement later next week. Aside from that, the weakening Swiss economy is making it even harder for the Swiss franc to fight and prevent the greenback from gaining. The Federal Statistical Office of Switzerland released the country’s annual retail sales report for November earlier today which alarmingly dropped from 0.4% to 0.0%.
The notable improvement in India’s economy is paving the way for USDINR bears to take the pair down in trading sessions. Bulls may have the past few sessions in the bag, but yesterday and today’s drop has erased the major gains of the USDINR pair. The geopolitical rift between Iran and the United States caused the pair to surge at the beginning of the year. The pair is widely believed to hit its support levels soon, perhaps mid-January, as the US dollar remains clouded with uncertainties; namely, the US-China trade war and the Middle East tension. Earlier today, Markit Economics issued its monthly report about India’s Nikkei services purchasing managers index or PMI which gave a delightful surprise for bears. The Indian Nikkei services PMI for December was first expected to contract to 51.4% from 52.7% prior, however, it came in higher at 53.3% for the last month of the last decade.
As the US dollar remains volatile to US-Iran tensions, the South African rand is seizing the opportunity to pull the pair lower in sessions. However, the USDZAR pair’s drop is limited as traders are still assessing the situation between Washington and Tehran. The pair is believed to reach its support levels soon, but its highly doubted whether bears have enough strength to pull the pair lower past it. The South African government is still dealing with a major headache, the extreme amount of debts the country has. Unfortunately, the South African rand is struggling to overpower the greenback today as the country’s December business confidence and November manufacturing production contradicts each other. Earlier today, the country’s Chamber of Commerce and Industry reported an improvement from 92.7% to 93.1% in South Africa’s business confidence in December.
The US dollar is on the red against the Russian ruble in sessions. USDRUB bears have successfully and gradually pulled the pair lower and are still expected to continue its path until late January. The pair is not on its two-year lows and is on levels last seen in early April 2018. However, it remains uncertain whether the pair would continue to plummet after it reached its support because the Russian central bank is widely expected to ease its monetary policy in the second month of the year, therefore weakening the Russian ruble along with it. Looking at it now, the politically stable landscape of the country and its government’s efforts to buoy its economy is helping the Russian ruble reach its strongest against the US dollar. Tomorrow, Moscow will issue its annual and monthly consumer price indices which are expected to bring in contradicting results. Although its believed to help the ruble, it’s not expected to give it a wild jolt.