USD / CHF rises to highest level since early July amid widespread USD strength

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  • USD / CHF gained strong positive traction on Thursday amid resurgent USD demand.
  • USD buying accelerated in reaction to an upbeat August retail sales report.
  • A subsequent strength beyond the July highs will set the stage for additional gains.

The pair USD/CHF added to its strong intraday gains and spiked to the highest level since early July, around the 0.9265-70 zone during the early days of the American session.

The US dollar was back in demand on Thursday and received an additional boost following the release of mostly upbeat US macroeconomic data. This, in turn, was seen as a key factor helping the USD / CHF pair gain strong positive traction and take advantage of the overnight rebound from weekly lows.

In fact, major retail broke consensus estimates and rose a surprising 0.7% in August. In addition, sales excluding cars increased 1.8% during the reported month. Separately, the Philadelphia Fed manufacturing index jumped to 30.7 for the current month from 19.4 in August.

This helped offset a mild disappointment in initial US jobless claims and reaffirmed market expectations for an imminent Fed phase-down announcement later this year. This was evident by a strong rally in US Treasury yields, further supporting the dollar.

Meanwhile, strong intraday momentum allowed the USD / CHF pair to overcome a strong hurdle near the 0.9235-40 bid zone. Some subsequent purchases beyond the swinging highs in July will confirm a short-term bullish breakout and set the stage for a further short-term appreciation move.

Technical levels

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