USDCHF on Friday rose 0.33% to 0.87550. Week ending 2024-11-08 rose 0.91%. What’s going on.

USDCHF Analysis

Performance
Period	Pct	Chg	Momentum
Friday	0.33%	28.7 Pips
Week 2024-11-08	0.91%	79 Pips	November	1.38%	119.6 Pips

Upcoming key events for the new week (London Time)

Mon 05:00 AM Veterans Day
Wed 01:30 PM CPI Inflation Rate (12-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims
Thu 01:30 PM PPI excluding Food and Energy sectors (12-mth)
Thu 08:00 PM Federal Reserve Chair Jerome Powell speech
Fri 01:30 PM Monthly Retail Trade (1-mth)

What happened over the week

The United States experienced several significant economic events recently. The University of Michigan reported an improvement in the U.S. Index of Consumer Sentiment, which rose to 73 points in November from 70.5 points in October, indicating a boost in consumer confidence. The Federal Reserve decided to lower the Federal Funds Rate from 5% to 4.75%, which often aims to stimulate economic growth by reducing borrowing costs. Meanwhile, the Bureau of Labor Statistics noted a decrease in preliminary Unit Labor Costs for the third quarter, showing 2.4%, down from a previous estimate of 0.4%, which suggests lower wage pressures. Initial Unemployment Insurance Claims rose to 221,000 for the week ending November 2, according to the Department of Labor, showing a slight increase compared to the previous weeks’ adjusted figures. Additionally, U.S. Nonfarm Business Labor Productivity fell to 2.2% in Q3 from 2.5% in Q2, highlighting challenges in output efficiency. The Census Bureau noted that new orders for manufactured goods showed improvement in September, reaching -0.5% compared to an adjusted -0.8% in August. Lastly, the presidential outcome saw Donald Trump winning over Kamala Harris for the 2024 election, becoming the 47th president.

The recent election results and economic indicators have influenced the USD/CHF currency pair. Following Trump’s election victory, the USD/CHF saw a rise, reaching a 14-week high after rebounding from a three-week low. The positive momentum for the USD/CHF can be attributed to expectations of potential fiscal policy changes under Trump’s administration that could stimulate economic growth, coupled with improved consumer sentiment which supports demand for the greenback. However, with the Fed’s decision to lower interest rates and increased unemployment claims, there may be some downward pressure. The upcoming U.S. economic indicators, including CPI Inflation Rate, Initial Unemployment Insurance Claims, PPI excluding Food and Energy, Federal Reserve Chair Jerome Powell’s speech, and Monthly Retail Trade, could further influence the USD/CHF pair’s direction as they will provide more insights into the economic trajectory and monetary policy adjustments.

From X (Twitter)

In September, Swiss inflation weakened to the slowest pace in more than three years, pointing to further monetary easing by the country’s central bank. #Swiss #Switzerland https://t.co/kRkXHQk971

— swissinfo.ch (@swissinfo_en) October 4, 2024

What can we expect from USDCHF for the new week and what happened on Friday?

USDCHF on Friday rose 0.33% to 0.88. Price is above 9-Day EMA while Stochastic is rising. For the week ending 2024-11-08, the pair rose 0.91% or 79 pips higher.

Looking ahead, USDCHF looks bullish as the pair ended higher after Friday trading session.

For the new week, our technical outlook looks bullish, immediate upside resistance level at 0.88 (WR1) with break above could target 0.89 (WR2). On the downside, we are looking at week low of 0.86 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.88 would suggest bullish bias after recent positive movement.

For the month of November, USDCHF is up by 1.38% or 119.6 pips higher.

Weekly key levels to watch out:

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