USD/CHF falls to one-week lows, below 0.9500 ahead of US data.

• USD/CHF is down for the third day in a row and falls to a one-week low on Wednesday.
• The dollar’s modest weakness is putting pressure amid growing recession fears and tensions between the United States and China.
• Investors could refrain from making aggressive bets and wait for the crucial US CPI report.

The pair USD/CHF It attracts fresh selling near the 0.9545 area on Wednesday and turns lower for the third day in a row. The pair continues the intraday decline during the first half of the European session and slides below the key psychological level 0.9500, hitting a one-week low in the last hour.

Uncertainty about the path of the Fed rate hike causes some selling around the US dollar, which turns out to be a key factor putting downward pressure on the USD/CHF pair. Investors balked at expectations of more aggressive monetary policy tightening after the New York Fed’s Survey of Consumer Expectations showed inflation prospects fell sharply in July. However, markets are still pricing in a 70% chance of a 75 basis point rate hike at the September FOMC meeting.

Apart from this, the prevailing cautious mood offers some support to the Swiss franc safe haven and contributes to the offered tone surrounding the USD/CHF pair. Market sentiment remains fragile amid growing concerns about a global economic slowdown and tensions between the United States and China over Taiwan. However, the downtrend looks muted as traders may refrain from making aggressive bets and prefer to wait for US consumer inflation numbers due later in the session. american.

The crucial US CPI report will be considered for further clues on the Fed’s near-term policy outlook. This, in turn, would play a key role in influencing USD price dynamics and helping determine the next leg of a directional move for the USD/CHF pair. Therefore, any further decline will most likely find decent support and stall near the 0.9470 area, or a four-month low hit on Aug 2nd.

Technical levels