- The Swiss franc among the weakest in the market, affected by expectations of rate hikes in Europe.
- Dollar modestly, DXY remains in recent range.
- USD/CHF tests the resistance at 0.9750.
USD/CHF rose as high as 0.9749, reaching the highest level in almost three weeks. The pair remains in the high zone, and accumulates a rise of 125 pips since the beginning of the week.
The officials of European Central Bank they continue to point to more increases in the interest rate. They even mention the real possibility of an increase of 75 basis points, as the last comment of Klass Knot, member of the Governing Board of the ECB.
The growing expectation of a rise in the most aggressive rate is giving support to the euro, which among the G10 is one of the best performers; and therefore it is weakening the Swiss franc, which is the weakest. EUR/CHF rose more than 100 pips in 24 hours and reached 0.9749, the highest level in three weeks.
For his part, the dollar it shows some weakness on Tuesday and although it has cut losses in the last few hours, it is still in negative territory against most currencies, with the exception of the Swiss franc.
Should USD/CHF continue the bull run and break above the 0.9750 resistance zone, the next barrier is seen at 0.9800, where the August high and the first half of July low are. Breaking that level would enable more raises. In the opposite direction, around 0.9705 there is a support that, if it gives way, would take strength from the dollar. Below then follows 0.9665.
Technical levels
Source: Fx Street
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