- Swiss franc confirms weekly losses across the board.
- USD/CHF could post the highest weekly close since April 2021.
The USD/CHF is rising for the second day in a row on Friday and recently reached a high of 0.9330, the highest level since late January. The Swiss franc is consolidating weekly closes against the dollar and also against the euro.
The war and the Fed
US President Biden said the US aims to end normal trade relations with Russia, among other announcements. In Ukraine, Russian forces increased bombing. Earlier, Russian President Putin’s comments about a change in talks with Ukraine were not followed up by further details.
In the economic field, the focus turns to the Federal Reserve. The FOMC will have its policy meeting next week, with a rate hike priced in. “With the economy growing strongly, creating jobs in significant numbers, and experiencing the fastest rate of price inflation in 40 years, not even the financial market uncertainty and volatility caused by the Russian invasion of Ukraine will deter the Fed from raising the We continue to expect six 25bp hikes this year and two more in 2023,” ING analysts commented.
The Swiss National Bank is seen to be holding on to negative rates for the time being, particularly after the recent drop in EUR/CHF. The pair is about to end the week strongly bullish, recovering from below-parity levels, the lowest since 2015.
USD/CHF poised to hit highest weekly close in nearly a year
USD/CHF is trading near the recent high. A close around current levels would be positive for the US dollar and the highest in months. The pair needs a clear break of the 0.9330 area to point to further gains. A failure around current levels would open the doors to a bearish correction. Critical support is seen at 0.9140, an uptrend line.
USD/CHF weekly chart
Additional technical levels
Source: Fx Street
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