News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Video
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Recent Searches
Trending Searches
View All
No data
Swiss Franc Pushes USD/CHF Toward 0.8000 as Fed Turmoil and Safe-Haven Demand Weigh on Dollar
Summary:
The Swiss Franc extended its rally to a fourth straight day on Friday, with USD/CHF sliding toward the 0.8000 handle as traders bet on a September Fed rate cut despite sticky US inflation.
Trading
0.79965
ENTRY
0.79000
TGT
0.81030
SL
0.79978 -0.00130 -0.16%
0
Point
Flat
0.79000
TGT
CLOSING
0.79965
ENTRY
0.81030
SL
The Swiss Franc strengthened for a fourth consecutive session on Friday, pushing the USD/CHF exchange rate closer to the psychologically significant 0.8000 mark as investors increasingly price in a September interest rate cut from the Federal Reserve and seek shelter amid growing political and policy uncertainty in Washington.
In late New York trade, USD/CHF was hovering around 0.7997, retreating from early intraday gains and marking fresh one-month lows. The pair’s decline closely mirrored the US Dollar Index (DXY), which slipped back below 98.00 to 97.76, underscoring a broader softening in the Greenback’s momentum.
The move comes despite US data that—at first glance—suggested economic resilience. The Bureau of Economic Analysis reported that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, rose 0.3% month-on-month in July, matching consensus forecasts. On an annual basis, core PCE accelerated to 2.9%, its highest level since February, from 2.8% in June. Headline inflation was more subdued, holding at 2.6% year-on-year with a modest 0.2% monthly increase.
Household demand appeared equally firm, with personal spending rising 0.5% in July, up from 0.3% in June, while personal income increased 0.4% month-on-month. Taken together, the data painted a picture of sticky inflation accompanied by robust consumer activity—a mix that in another market environment might have lifted the Dollar on expectations of a more hawkish Fed.
Yet traders largely ignored the stronger demand backdrop, focusing instead on the policy outlook. Fed funds futures are now pricing an 89% probability of a 25 basis-point cut at the September FOMC meeting, cementing expectations that the central bank will move toward easing after holding rates steady since May. Yields on the front end of the Treasury curve slipped as investors positioned for a policy shift, though longer-dated yields were steadier, reflecting confidence that long-run inflation risks remain contained.
Adding to the Dollar’s vulnerability was intensifying political tension surrounding the independence of the Fed. The legal dispute between President Donald Trump and Fed Governor Lisa Cook escalated this week, with Cook filing an emergency motion to block her removal after Trump attempted to oust her. The Fed submitted its own brief in the case Friday, while the Justice Department signaled it would not oppose converting Cook’s request into a preliminary injunction. Legal experts note that the battle hinges on the interpretation of “for cause” under the Federal Reserve Act, a term traditionally associated with misconduct but now potentially subject to broader interpretation. Market observers warn the case could ultimately find its way to the Supreme Court, raising fresh uncertainty about the Fed’s autonomy.
Against this backdrop, the Swiss Franc has been a prime beneficiary. Long regarded as a safe-haven currency, the Franc’s appeal has been reinforced by both macroeconomic and political risks that undermine the Greenback. Ongoing trade frictions, questions about US institutional stability, and the dovish recalibration of Fed expectations have driven investors toward the security of the Swissie.
Technical Analysis
From a technical perspective, USD/CHF remains under pronounced bearish pressure, with the pair breaking through key support at 0.8020. The move places the pair firmly below the 50-day Exponential Moving Average (EMA50), reinforcing the dominance of the corrective downtrend on the short-term charts. The broader bearish structure remains intact, with the pair trending alongside a supportive channel that favors additional downside.
However, momentum indicators suggest near-term caution for bears. The Relative Strength Index (RSI) has entered oversold territory, flashing early positive signals that could prompt a temporary pause or modest rebound in losses.
Still, technical setups highlight further downside risk. The current sell entry is pegged at 0.8030, aligning with a pullback resistance and the 38.2% Fibonacci retracement. A stop loss is recommended near 0.8100, coinciding with a swing high and the 127.2% Fibonacci extension. On the downside, the take-profit target lies at 0.7900, which aligns with a Fibonacci extension support zone around 161.8%.
TRADE RECOMMENDATION
SELL USDCHF
ENTRY PRICE: 0.8000
STOP LOSS: 0.8100
TAKE PROFIT: 0.7900
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
Live Learn project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
Warren Takunda, a seasoned finance leader specializing in the Middle East, is a trusted senior analyst with a proven track record. As head of the finance team, he excels in financial planning, analysis, and reporting. Warren's expertise in financial modeling and investment analysis delivers valuable insights to clients.
Related Analysis
Swiss Franc Pushes USD/CHF Toward 0.8000 as Fed Turmoil and Safe-Haven Demand Weigh on Dollar
TradingAUD/USD Climbs as Fed Rate Cut Bets Rise, Australian Inflation Surprises
PROFIT +74 PointsAUD/USD Climbs as Fed Rate Cut Bets Rise, Australian Inflation Surprises
PROFIT +80 PointsGold Corrects Lower but Market Still Poised for Gains on Rate-Cut Bets
PROFIT +1879 PointsGold Corrects Lower but Market Still Poised for Gains on Rate-Cut Bets
PROFIT +1692 Points
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2023 Live Learn Ltd
Quotes Video Analysis Data Warehouse Pro AI Signal News Economic Calendar 7x24 User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.