- USD/CHF falls as US Core CPI rose 4.6% yoy, down from the prior month.
- The University of Michigan Consumer Sentiment was below expectations.
- USD/CHF Price Analysis: It pushes towards 0.9100, but sellers are struggling to break that support below.
USD/CHF falls to a new weekly low below 0.9126, helped by economic data from the United States (US) showing inflation cooling. Hence, bets are rising that the US Federal Reserve (Fed) could pause its tightening cycle, putting the dollar under pressure. At the time of writing, the USD/CHF pair was trading at 0.9127, below its opening price.
US core CPI declines, reinforcing the idea of a Fed pause.
The Federal Reserve’s preferred inflation gauge, core Personal Consumption Spending (PCE), rose 4.6% yoy, down from 4.7% the previous month. In monthly terms, inflation excluding food and energy rose 0.3%, below estimates of 0.4%.
Late in the day, the University of Michigan (UM) Consumer Sentiment came in below estimates of 67 and stood at 62. According to Joanne Hsu, director of the survey, “Overall, our data revealed multiple signs of that consumers increasingly expect a next recession” The same study showed that one-year inflation expectations stood at 3.6%, below 3.8%, while for a 5-year horizon, consumers estimate inflation at 2.9%.
USD/CHF extended its losses amid positive news from the US front. Although Boston Fed President Susan Collins welcomed the data, she said it had not changed her outlook, adding that the Fed has more work to do.
On the Swiss front, the Swiss National Bank (SNB) continued to tighten monetary conditions by raising rates 50 basis points on March 23, towards the 1.50% zone. Additionally, February Retail Sales rose 0.3% year-on-year, giving the USD/CHF pair a lift.
USD/CHF Technical Analysis
Although USD/CHF continued to push towards the 0.9100 figure, sellers were unable to book a decisive break below it. Technical indicators like the Relative Strength Index (RSI) and the Rate of Change (RoC) are flat, suggesting that sellers are jumping ship. However, if USD/CHF falls below 0.9100, it would open the door to challenging the year low at 0.9059. On the other hand, if buyers recapture 0.9150, it would pave the way for a rally towards 0.9200 and beyond.
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.
