USD/CHF fails to break above 0.9300 and USD loses ground

• The US dollar hits session lows again at 0.9275 after failing at 0.9300.
• The pair continues to move within the recent ranges in a session with few markets.
• Speculations about a possible US recession and Fed easing in 2023 are hurting demand for the dollar.

The dollar’s attempt to recapture the 0.9300 level seen at the start of the European session on Wednesday has been capped at 0.9305. The pair USD/CHFhowever, remains within recent ranges, with support above 0.9275/80 and moderately positive on the daily chart.

USD remains afloat, weighed down by speculation about Fed easing

In the absence of any relevant macroeconomic releases this week, cooling US inflation figures released on Friday have fueled speculation about a slowdown in the Federal Reserve’s tightening path in 2023, keeping dollar bulls at bay. .

In addition, a series of bleak indicators in the US have fueled concerns about the possibility of a recession in 2023, adding pressure on the US central bank to drop its hawkish stance sooner than later. provided.

The Dollar Index is, in fact, accelerating its reversal from session highs at 104.35, losing 0.2% on the daily chart after a moderately positive session opening and erasing Tuesday’s slight recovery.

Elsewhere, weak US Treasury yields are not spurring dollar bulls, while market mood remains moderately upbeat, with major European stock indices in the green on the news. that China plans to end restrictions on incoming travelers from January 8.

As for the macroeconomic calendar, the Swiss ZEW survey has shown a larger-than-expected improvement in economic expectations, reading -42.8 in December against market expectations of -50.5 and from -57.5 in the previous month. .

During the North American session, pending US home sales, the Richmond Fed manufacturing index and oil stock figures could provide some distraction for currency traders.

Technical levels to watch