USDCHF Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.49% | -40.1 Pips |  |
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| Week to-date | -0.53% | -44.1 Pips | |
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| May | -0.4% | -32.8 Pips | |
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Upcoming key events (London Time)
Tue 08:35 AM CHF SNB Chairman Schlegel speech 
Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
What happened lately
Switzerland’s consumer price index (CPI) inflation rate for April showed a decrease to 0% from the previously recorded 0.3% in March, as per the latest report by the Federal Statistical Office (FSO). This indicates stability in Swiss consumer prices, as there has been no increase in the cost of goods and services within the country for the given month. Stable inflation can be beneficial for consumers as it means their purchasing power is not being eroded by rising prices, but it could pose challenges for policymakers aiming to stimulate the economy if it hinders consumer spending and business investment.
In the coming days, two significant events could impact the USDCHF currency pair. Firstly, the speech by the Swiss National Bank’s (SNB) Chairman Schlegel scheduled on Tuesday holds substantial relevance. Depending on the tone and content regarding Switzerland’s monetary policy and economic outlook, any indication of continued loose monetary policy could either comfort investors or discourage currency strengthening, impacting the Swiss franc’s strength. Secondly, the U.S. Federal Reserve’s interest rate decision on Wednesday will also be crucial. Market participants will be closely watching for any changes in interest rates or indications of future monetary policy, which can influence the U.S. dollar’s strength.
The USDCHF currency pair saw a decline by 0.49% to 0.82230 on Monday as it continues to undergo a consolidation phase. The drop signifies a potential weakening of the U.S. dollar against the Swiss franc, driven, in part, by the latest economic data from Switzerland and an environment of uncertainty surrounding upcoming central bank announcements. The unchanged Swiss CPI data suggesting price stability might support the Swiss franc if the domestic economic context appears stronger relative to U.S. prospects, especially if the Federal Reserve signals a more dovish stance or decides to maintain interest rates amid global economic conditions. Consequently, traders should pay close attention to these events’ outcomes as they will likely influence market dynamics and investor sentiment regarding USDCHF.
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What can we expect from USDCHF today?
USDCHF on Monday dropped -0.49% to 0.82230. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.81964 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.82750 or trades above daily pivot 0.82357. Break above could target R1 at 0.82623. While to the downside, we are looking at 0.81964 (S1) and daily low of 0.82091 as support levels. USDCHF need to break on either side to indicate a short-term bias. A close below 0.82091 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 | 0.83282 |
| R2 | 0.83016 |
| R1 | 0.82623 |
| Daily Pivot | 0.82357 |
| S1 | 0.81964 |
| S2 | 0.81698 |
| S3 | 0.81305 |
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