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USD/CHF remains around 0.8800 awaiting US CPI.

  • USD/CHF moves sideways near psychological level ahead of US inflation data
  • The Fed is expected to keep interest rates at 5.5% after Wednesday’s policy meeting.
  • Markets expect the Fed to keep monetary policy tight for a longer period as the labor market showed resilience.
  • The SNB is expected to keep interest rates at 1.75% at its next meeting on Thursday.

USD/CHF hovers around the 0.8800 region at the start of the American session on Monday, struggling to extend its gains for the third consecutive session. The USD/CHF pair has continued an upward trajectory, boosted by positive employment data in the United States (US). The rise in US bond yields, driven by speculation over the path of Federal Reserve (Fed) rates, is further strengthening the US Dollar (USD) and offering support to the USD/CHF pair.

US nonfarm payrolls for November beat expectations with a substantial increase of 199,000, and the unemployment rate fell to 3.7% from 3.9% previously. Additionally, the preliminary Michigan Consumer Sentiment Index for December showed a notable rise, reaching 69.4, which is a significant increase from the previous reading of 61.3.

However, the consensus is that the Federal Reserve (Fed) will keep interest rates at 5.5% during the next monetary policy meeting on Wednesday. However, the strength of the labor market could put pressure on the Fed to keep interest rates higher for longer. Investors are expected to closely examine U.S. Consumer Price Index (CPI) data on Tuesday, anticipating possible repercussions on markets.

On the Swiss front, the CHF experienced downward pressure following the publication of seasonally adjusted unemployment rate data by the State Secretariat for the Economy (SECO) last week. The report revealed that the total number of unemployed civilian workers in November remained stable at 2.1%, in line with previous figures.

On the other hand, the moderation of the Swiss Consumer Price Index (CPI) in November (1.4% compared to 1.7% previously) contributed to the depreciation of the Swiss Franc (CHF). The Swiss National Bank’s (SNB) next interest rate decision on Thursday is expected to keep policy rates unchanged at 1.75%.

USD/CHF technical levels to watch

Latest price today 0.8801
Today’s daily change 0.0003
Today’s daily variation 0.03
Today’s daily opening 0.8798
daily SMA20 0.8814
daily SMA50 0.8945
SMA100 daily 0.8903
SMA200 daily 0.8952
Previous daily high 0.8821
Previous daily low 0.8741
Previous weekly high 0.8821
Previous weekly low 0.8667
Previous Monthly High 0.9113
Previous monthly low 0.8685
Daily Fibonacci 38.2 0.879
Fibonacci 61.8% daily 0.8772
Daily Pivot Point S1 0.8752
Daily Pivot Point S2 0.8707
Daily Pivot Point S3 0.8673
Daily Pivot Point R1 0.8832
Daily Pivot Point R2 0.8866
Daily Pivot Point R3 0.8911

Source: Fx Street

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