- The USD/CHF pair starts the week with minimal losses as risk aversion remains in the driver’s seat.
- US wholesale inventories were flat in March, up 9.1% year-on-year despite a first-quarter decline.
- Investors are watching the Fed Mortgage Loan Survey and US inflation data.
The pair USD/CHF started the week with minimal losses of 0.15%, despite the latest round of Swiss inflation data suggesting the Swiss National Bank (SNB) may take a less dour approach. The latest data from the US showed a strong labor market, although traders are watching for inflation data this week. At the time of writing, USD/CHF is trading at 0.8891, down 0.15% from its opening price.
US stocks trending lower, reflecting a sour mood with investors looking for safety moved to the CHF
The USD/CHF pair will continue to fall during the day as the US Dollar Index (DXY), which measures the value of the dollar against a basket of six currencies, fell 0.02% to 101.190. US stocks trend lower as investors keep an eye on the latest Senior Loan Officer Survey (SLOOS) released by the Fed amid ongoing US banking turmoil.
Although US bank stocks have regained some ground, Wall Street remains under pressure as sentiment has taken a hit as US debt limit discussions show no signs of abating. improvement. The US Treasury Secretary, Janet Yellen, commented that there are “no good options” to solve the debt limit in Washington without the help of the US Congress.
In terms of data, the US Economic Agenda revealed that wholesale inventories were unchanged in March, below estimates of 0.1% m/m, the US Commerce Department revealed. On a year-over-year basis, inventories rose 9.1% in March, despite a first-quarter decline, as higher US consumer spending contributed to lower inventories.
USD/CHF Technical Analysis
From a daily chart perspective, USD/CHF remains skewed to the downside, although it is trading above year-long lows of 0.8820. However, as price action continues in a downtrend, the RSI is making higher lows, which means a positive divergence is emerging. Therefore, this could open the door for further gains, but the RSI should break above the 50 midline. Downside risks in USD/CHF at 0.8820, followed by 0.8800. Conversely, if USD/CHF recaptures the 0.8900 zone, rallies are warranted, although a trend line of resistance to the downside is in sight at 0.8970, before rising above 0.9000.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
