Usdchf sees a rise as US inflation data is awaited

USDCHF Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	1.21%	102.6 Pips
Week to-date	-0.54%	-46.4 Pips
April	-3.22%	-285 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD CPI Inflation Rate (12-mth)
Fri 01:30 PM USD PPI excluding Food and Energy sectors (12-mth)

What happened lately

In the United States, two significant economic events are on the horizon. The Consumer Price Index (CPI) Inflation Rate data is scheduled for release on Thursday. As a critical indicator of inflation, this data could impact market expectations regarding future Federal Reserve monetary policy actions. Additionally, on Friday, the Producer Price Index (PPI) data, excluding the volatile food and energy sectors, will also be published. This data provides insight into the price changes faced by producers, which can eventually affect consumer prices. Both events are tagged as high-impact, signifying their potential to influence financial markets and currencies.

The Swiss Franc did not have major economic data releases. The currency remains sensitive to global economic events and any changes in risk sentiment due to Switzerland’s role as a safe-haven currency. Economic performance in Switzerland is typically stable, but the Franc’s value might be affected by external developments, particularly given Switzerland’s small, open economy that relies heavily on international trade. Investors often look at the country’s close ties with the European Union and other major economies while making forex evaluations.

The USDCHF currency pair witnessed an increase of 1.21% on Wednesday, reaching a level of 0.85646. This rise indicates a strengthening of the US Dollar against the Swiss Franc, despite the pair currently being in a consolidation phase. The upcoming CPI and PPI data releases for the US are likely to play a crucial role in determining the pair’s short-term movements. A higher-than-expected CPI reading could bolster the US Dollar, as it might heighten expectations for tighter monetary policy by the Federal Reserve, thus increasing USDCHF. Conversely, if the inflation data signals slowing inflationary pressures, it could exert downward pressure on the US Dollar against the Franc, leading to a potential depreciation of the USDCHF pair. With these high-impact events on the docket, traders and investors should closely monitor the inflation data for shifts in market sentiment.

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What can we expect from USDCHF today?

USDCHF on Wednesday rose 1.21% to 0.85646. 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 0.84214 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.85829 or trades above daily pivot 0.85021. Break above could target R1 at 0.86454. While to the downside, we are looking at 0.84214 (S1) and daily low of 0.83589 as support levels. USDCHF need to break on either side to indicate a short-term bias. A break above 0.85829 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:

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