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CHF Attracts Safe Haven Demand Amid Souring Risk Sentiment

FOREX
  • Equities are sliding to their worst levels of the session amid headlines from Politico stating that an Israeli ground invasion of Gaza is imminent. The Journal have also just published an article detailing that the Israeli military have confirmed that a number of a small raids have been conducted by their personnel inside the Gaza Strip. The first time that it has confirmed forces are on the ground.
  • The USD index trades with a moderate upward bias, however, the real haven flow has seen the Swiss Franc outperform all others in G10.
  • EURCHF now trades down 1.07% on the session and the move has been exacerbated by the break below the year’s lows at 0.9516, triggering an extension to lows of 0.9457 as of typing. The next notable downside target resides at 0.9410, the September 2022 lows.
  • GBPUSD also trades with a downward bias, continuing to grind lower throughout the US session with US PPI, CPI and the University of Michigan inflation expectations data all beating expectations this week and underpinning the greenback recovery.
  • For now, last week’s fresh cycle lows remain in view, which has reinforced bearish conditions over the medium-term. 1.2028, the Mar 16 low will be the key downside target and any short-term gains are considered corrective.

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