Usdchf increases by 0.02% to 0.88170 amid consolidation

USDCHF Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.02%	1.8 Pips
Week to-date	0.29%	25.7 Pips
March	-2.29%	-206.3 Pips

Upcoming key events (London Time)

Fri 02:00 PM USD Index of Consumer Sentiment

What happened lately

In February, economic data from the United States showcased a generally downward trend across various metrics. The U.S. Producer Price Index (PPI), excluding food and energy sectors, dropped by 0.1% compared to January’s 0.5%. Over a 12-month period, this PPI metric decreased to 3.4% from 3.8% in January. The monthly PPI remained flat in February at 0%, compared to a revised figure of 0.6% for January. Simultaneously, U.S. Initial Unemployment Insurance Claims slightly decreased to 220,000 from a previous figure of 221,000, indicating a modest change in the labor market. Furthermore, the U.S. Monthly Treasury Budget Statement showed a more significant deficit at -$307 billion in February compared to January’s -$129 billion deficit.

Additionally, inflation metrics showed mixed results in February. The Consumer Price Index (CPI) Inflation Rate for the 12-month period declined to 2.8% from 3% in January, whereas the monthly CPI decreased to 0.2% from the previous month’s 0.5%. Excluding food and energy, the CPI inflation rate for the 12-month period came down to 3.1% from 3.3% in January, and for one month it dropped to 0.2% from 0.4%. These trends in inflation indices suggest a cooling in price growth.

The above economic data indicates a slight softening in the U.S. economy, with lowered inflation rates and a decrease in the PPI, suggesting a potential easing of pricing pressure. In terms of its effect on the USDCHF, a decline in producer and consumer inflation rates can lead to anticipations of a dovish stance by the Federal Reserve regarding future interest rate hikes, which typically weakens the U.S. dollar relative to other currencies. However, the currency pair USDCHF rose marginally by 0.02% to 0.88170 on the last trading day, which might not yet reflect these economic data points. Despite the unchanged initial unemployment claims figure providing neutral sentiment, upcoming events, such as the USD Index of Consumer Sentiment, will also play a crucial role in determining USDCHF’s future movements.

Latest from X (Twitter)

Tweets by Swiss Statistics

What can we expect from USDCHF today?

USDCHF on Thursday rose 0.02% to 0.88170. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.88129 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.88200 or trades above daily pivot 0.88164. Break above could target R1 at 0.88206. While to the downside, we are looking at 0.88129 (S1) and daily low of 0.88123 as support levels. USDCHF need to break on either side to indicate a short-term bias. A break above 0.88200 may suggest continuation after recent positive movement.

For the week to-date, take note that USDCHF is mixed as compared to the prior week.

Key levels to watch out:

#USDCHF Trending on Twitter

[custom-twitter-feeds hashtag=”#USDCHF” num=3 showheader=false]