USDCHF Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.09% | -8.4 Pips |  |
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| Week to-date | 0.64% | 56.9 Pips |  |
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| December | 1.86% | 164 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the latest data from the Department of Labor revealed a slight decrease in Initial Unemployment Insurance Claims for the week ending on December 21. The claims dropped to 219,000 from the previous figure of 220,000. This slight dip indicates a marginal improvement in the U.S. labor market, suggesting that fewer individuals are filing for unemployment benefits. While the number remains relatively stable, the decrease reflects a resilient job market amid broader economic uncertainties. Such data often signals to investors and policymakers that the U.S. labor sector is maintaining its strength, potentially influencing decisions related to monetary policy and investment strategies.
In Switzerland, the ZEW Financial Market Survey for December displayed a significant drop, falling to -20 points from -12.4 points in November, as reported by ZEW. This decline indicates a deteriorating outlook among financial experts about Swiss economic conditions. A negative ZEW index suggests pessimism regarding economic growth prospects, which may be influenced by various factors including global economic challenges and domestic policy concerns. The decrease in the ZEW Financial Market Survey suggests declining confidence in the Swiss economy, which may impact investor sentiment and financial market behavior in Switzerland.
With respect to the USDCHF currency pair, which fell by 0.09% to 0.89874, such market movements reflect the interplay of economic conditions in both countries. The improvement in the U.S. labor market compared to the declining confidence in the Swiss economy indicated by the ZEW survey may initially suggest some strength for the USD against the CHF. Nonetheless, the pair seems to be in a phase of consolidation, perhaps due to the absence of major economic events that could significantly influence the market direction on the given day. As market participants weigh these economic reports, coupled with potential adjustments in monetary policy outlooks, such dual country economic dynamics can subtly influence the USDCHF exchange rate, keeping investors alert to forthcoming data and announcements.
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What can we expect from USDCHF today?
USDCHF on Thursday dropped -0.09% to 0.89874. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.89761 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.90100 or trades above daily pivot 0.8993. Break above could target R1 at 0.90044. While to the downside, we are looking at 0.89761 (S1) and daily low of 0.89817 as support levels. USDCHF need to break on either side to indicate a short-term bias. A close below 0.89817 would indicate selling pressure.
For the week to-date, take note that USDCHF is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.90327 |
| R2 | 0.90213 |
| R1 | 0.90044 |
| Daily Pivot | 0.8993 |
| S1 | 0.89761 |
| S2 | 0.89647 |
| S3 | 0.89478 |
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