USDCHF Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.85% | 75.4 Pips |  |
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| Week to-date | 1.41% | 124.1 Pips | |
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| December | 0.99% | 87.4 Pips |  |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the Monthly Treasury Budget Statement for November plummeted to a deficit of -$367 billion from -$257 billion in October, according to the Bureau of the Fiscal Service. This significant increase in the budget deficit might reflect higher government expenditures, decreased revenues, or a combination of both factors. On the inflation front, the U.S. CPI Inflation Rate, excluding food and energy sectors, held steady at 0.3% month-on-month in November, as reported by the Bureau of Labor Statistics. Meanwhile, the headline CPI inflation rate saw a slight uptick, increasing to 0.3% from 0.2% in October. The year-over-year data reflects a stable core inflation rate, excluding food and energy, at 3.3% for November. Overall, the 12-month CPI inflation rate edged higher to 2.7% from the previous month’s 2.6%, indicating continued inflationary pressures within the economy.
The USDCHF currency pair saw an increase, with the U.S. dollar strengthening by 0.85%, reaching 0.89108 on Thursday. The rise in the USDCHF exchange rate is likely influenced by the steady inflation rates and the sturdy core inflation data, leading the market to anticipate a more hawkish monetary stance by the Federal Reserve to contain inflationary trends. Despite the widening of the fiscal deficit, the focus remains on inflation control, potentially driving positive sentiment for the U.S. dollar. Consequently, as investors perceive controlled inflation and probable monetary policy tightening as signs of economic health, demand for the greenback may continue to support the USDCHF in the near term.
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What can we expect from USDCHF today?
USDCHF on Thursday rose 0.85% to 0.89108. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCHF looks bullish as the pair ended higher after Thursday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.89537 with break above could target R2 at 0.89966 or figure level area. While towards the downside, we are looking at daily low of 0.88161 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.89278 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCHF is bullish as the pair continued to trade higher and is up by 1.41% over the past few days.
Key levels to watch out:
| R3 | 0.90654 |
| R2 | 0.89966 |
| R1 | 0.89537 |
| Daily Pivot | 0.88849 |
| S1 | 0.8842 |
| S2 | 0.87732 |
| S3 | 0.87303 |
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