Usdchf drops amid weakening economic data in us and switzerland

USDCHF Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.61%	-54.2 Pips
Week to-date	-0.29%	-25.8 Pips
April	-0.61%	-54.3 Pips

Upcoming key events (London Time)

Thu 07:30 AM CHF Swiss CPI Inflation Rate (12-mth)
Fri 01:30 PM USD Nonfarm Payroll Employment
Fri 01:30 PM USD Average Hourly Earnings (12-mth)

What happened lately

In the United States, the latest economic data showed a decline in new orders for manufactured goods to 0.6% in February, a decrease from the revised figure of 1.7% in January. This data reflects a weakening demand in the manufacturing sector, which could be attributed to various macroeconomic factors, including tighter monetary conditions or slowing economic growth. Additionally, the U.S. Job Openings and Labor Turnover Survey (JOLTS) indicated a drop in job openings to 7.568 million in February, down from 7.74 million in January. This decline suggests a potential cooling in the labor market, which may have some implications for consumer spending and overall economic growth.

In Switzerland, retail trade real turnover decreased to 1.6% over a twelve-month period in February, down from a revised 2.9% in January. This downturn indicates a slowdown in consumer spending, which can affect various sectors dependent on consumer demand. Such a decrease may also impact the Swiss economy’s overall performance, though specific underlying causes were not detailed.

The recent developments in both the U.S. and Switzerland have likely had some influence on the USDCHF currency pair, which dropped by 0.61% to 0.87827 on the most recent trading day. The slowdown in U.S. manufacturing orders and job openings could trigger investors’ concerns about the U.S. economic outlook, leading to a weaker dollar against the Swiss franc. Concurrently, Switzerland’s decrease in retail turnover may temper the franc’s strength, but the impact of U.S. data appears to be more significant currently. Markets may be further influenced by upcoming economic events, including Switzerland’s CPI inflation rate and the U.S. nonfarm payroll employment and hourly earnings data, all of which could cause significant movements in the USDCHF pair depending on how they match market expectations.

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What can we expect from USDCHF today?

USDCHF on Wednesday dropped -0.61% to 0.87827. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDCHF looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at S1 0.87411 with break below could see further selling pressure towards S2 at 0.86996. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.89000 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.87790 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:

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